Answer: $105,000
Explanation:
Given, unrecognized prior service costs granted = $600,000
service years in future = 2,000
service years this year = 350
Mistor's unrecognized prior service cost amortization for the year = (unrecognized prior service costs granted) ÷ (service years in future) ×(service years this year )
= $(600000÷2000×350)
= $105,000
Hence, Mistor's unrecognized prior service cost amortization for the year = $105,000
A measure of GDP in which quantities produced are valued at the prices of a fixed base year is called:
Answer:
Real GDP
Explanation:
A measure of GDP in which quantities produced are valued at the prices of a fixed base year is called "Real GDP"!
Real GDP measures the values of the output adjusted for price changes. It reflects the value of all goods and services which are produced in a particular year.
It is also known as "constant-price" GDP. Mathematically, Real GDP = nominal GDP/ deflator.
Jones Corp. reported current assets of $196,000 and current liabilities of $138,500 on its most recent balance sheet. The current assets consisted of $61,000 Cash; $42,100 Accounts Receivable; and $92,900 of Inventory. The acid-test (quick) ratio is
Answer:
0.74
Explanation:
Jones corporation reported a current assets of $196,000
The current liabilities is $138,500
The current assets consists of $61,000 cash , account receivable= $42,100, inventory= $92,900
Therefore the quick ratio can be calculated as follows
= cash + account receivables
= $61,000 + $42,100
= $103,100
$103,100/$138,500
= 0.74
Hence the acid test(quick ) ratio is 0.74
Suppose there are three firms in a market. The largest firm has sales of $50 million, and each of the other two firms has sales of $25 million. The Herfindahl-Hirschman Index of this industry is:________.
a. 2,500.
b. 3,750.
c. 2,550.
d. 3,125.
Answer:
b. 3,750.
Explanation:
The computation of the Herfindahl-Hirschman Index of this industry is shown below:
Herfindahl-Hirschman Index of this industry is
= ($50 million) ^2 + ($25 million) ^2 + ($25 million) ^2
= $2,500 + $625 + $625
= $3,750 million
Hence, the correct option is b. $3.750
We simply do the above calculation so that the index could come
Which of the following statements about steering needed resources to execution-critical value chain activities is false?
A) Good execution of a new or revised strategy often requires devoting more resources to some value chain activities and perhaps downsizing the operating budgets and resources devoted to activities/organizational units with a lesser role in the new strategy.
B) Both strategy changes and efforts to improve execution of an existing strategy typically entail budget reallocation and resource shifting.
C) A company's operating budget must be both strategy-driven (in order to amply fund competent performance of strategy-critical value chain activities) and lean (in order to operate as cost-efficiently as possible).
D) Strategy changes and new execution initiatives should normally be made without adding to total expenses.
E) Underfunding organizational units and execution-critical value chain activities slows down the whole process of implementing and executing strategy and impedes the efforts of organizational units to execute their pieces of the strategic plan proficiently.
Answer:
A) Good execution of a new or revised strategy often requires devoting more resources to some value chain activities and perhaps downsizing the operating budgets and resources devoted to activities/organizational units with a lesser role in the new strategy.
Explanation:
Businesses have limited resources that needs to be allocated to critical activities that will make it meet its objectives. So it is important for proper prioritisation to be done to maximise use of these resources.
There is need to focus activities on the company's objectives and to use a lean budgeting approach to ensure cost efficiency.
It is important to note that underfunding execution critical activities may result in slowdown of the whole process.
Reallocating resources to critical activities is also necessary.
So the statement - Good execution of a new or revised strategy often requires devoting more resources to some value chain activities. Is false
All effort must be on activities that fit into the company's strategy.
When nations increase production in their area of _________________ and trade with each other, both sides can benefit.
Answer:
comparative advantage
Explanation:
Comparative advantage in finance is crucial for production because it helps nation to manufacture their goods with low opportunity cost compare to their co- partner in that production line.
Production which is an essential aspect in economics is a process of turning raw materials into finished goods are very crucial in each nation of the world and for economic process to be completed.
It should be noted that When nations increase production in their area of comparative advantage and trade with each other, both sides can benefit from it.
Grant sold his home for $275,000.00. What is the total transfer tax due on the sale?a. $2,062.50.
b. $302.50.
c. $2,365.00.
d. $1,760.00.
Answer:
b. $302.50.
Explanation:
The computation of the total transfer due on the sale is shown below:
As we know that the transfer tax is $0.55 for $500
So for the amount i.e. equivalent to the sale value of the home i.e. $275,000
In this, the total transfer tax due is
= $275,000 ÷ $500 × 0.55
= $302.50
Therefore the option b is correct
And the other options are wrong
Two different products are obtained by refining one ore. The refining process would be considered as:
Answer: Joint process
Explanation:
Joint products result when the same raw resource is processed so Joint process refers to the process by which two (or even more) products are obtained by refining one ore.
The processing of oil for instance results in the production of kerosene, gasoline, bitumen, airplane fuel and even petroleum jelly so all those products are joint products.
Joint products result when the same raw material is processed, so Joint Process refers to the process by which two (or more) products are obtained by refining one ore.
What do you mean by Joint Product?A joint product can be the result of a process with fixed or variable dimensions. A joint product is a product that results in collaboration with other products in the processing of the same input; this common process is also called joint production.
The processing of oil for example results in the production of kerosene, gasoline, bitumen, airplane fuel, and even petroleum jelly so all of these products are joint products.
Hence, Joint Process is the correct choice.
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A client interested in the returns offered by CMOs asks you which type has the lowest prepayment risk. What should you say
Answer: Planned amortization class (PAC) tranches
Explanation:
The planned amortization class (PAC) is a form of CMO which is typically put I place for that risk-averse investors. It gives a principal repayment schedule that have been predetermined in as much as there are certain range for the mortgage prepayment.
It should also be noted that it has top priority and also gets principal payments which can be up to certain amount.
A registered representative conducts a seminar about investing in the meeting room of a local apartment complex. At the end of the talk, he hands out his business card and tells the attendees that if they want additional information, please write their contact information on the reverse side of the business card and return it to him. When he gets back to the office and starts to re-contact some of the attendees who returned the business card, he finds that one of them is blocked because the client name is on the National Do Not Call Registry. Which statement is TRUE
Answer:
This prospect can be called by the registered representative expressed consent.
Explanation:
Based on the policy information available, it possible for such a call to occur despite the fact the client is on the National Do Not Call Registry if the registered representative gains expressed consent from the client.
"A customer places an order to sell 100 shares of ABC at the market. The initial execution report shows the trade occurring at $75.50. The firm later discovers that the trade occurred at $75.13. Which statement is TRUE?"
Answer: The customer will receive $7,513 less any applicable commissions
Explanation;
This points to an error in confirmation not an error in execution. As such, the firm will not be held liable for the error and will simply have to send the correct confirmation. The customer will therefore get the correct trade price of $75.13 which will result in them receiving $7,53 less any applicable commissions.
Had it been an error of execution in that the firm made a mistake and sold at a price they were not to, they would incur the cost.
There are many activities in marketing that are interrelated and similar in purpose. These
activities are referred to as marketing
Explanation:
they are in the chain of distribution
channels of distribution aremanufacturer ---agent --- wholesale---retailer ---consumer
Tanek Corp.'s sales slumped badly in 2017. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 500,00 units of product: sales $2,500,000, total cost and expenses $2,600,000, and net loss $100,000. Costs and expenses consisted of the amounts shown below.
Total Variable Fixed
Cost of goods sold $2,140,000 $1,590,000 $550,000
Selling expenses 250,000 92,000 158,000
Administrative expenses 210,000 68,000 142,000
$2,600,000 $1,750,000 $850,000
Management is considering the following independent alternatives for 2018.
1. Increase unit selling price 20% with no change in costs, expenses, and sales volume.
2. Change the compensation of salespersons from fixed annual salaries totaling $150,000 to total salaries of $60,000 plus a 5% commission on sales.
(a) Compute the break-even point in dollars for 2017. (Round final answer to 0 decimal places.)
(b) Compute the contribution margin under each of the alternative courses of action. (Round final answer to 0 decimal places.)
(c) Compute the break-even point in dollars under each of the alternative courses of action. (Round selling price per unit to 2 decimal places and other calculations to 0 decimal places.)
Break-even point for alternative 1 $
Break-even point for alternative 2 $
Which course of action do you recommend?
Answer:
(a) Compute the break-even point in dollars for 2017. (Round final answer to 0 decimal places.)
total variable costs per unit = $1,750,000 / 500,000 = $3.50
sales price per unit = $2,500,000 / 500,000 = $5
contribution margin per unit = $5 - $3.50 = $1.50
total fixed costs = $850,000
break even point in units = $850,000 / $1.50 = 566,667 units
break even point in $ = 566,667 units x $5 = $2,833,335
(b) Compute the contribution margin under each of the alternative courses of action.
alternative 1) $6 - $3.50 = $2.50
alternative 2) $5 - $3.75 = $1.25
(c) Compute the break-even point in dollars under each of the alternative courses of action. (Round selling price per unit to 2 decimal places and other calculations to 0 decimal places.)
alternative 1:
break even point in units = $850,000 / $2.50 = 340,000 units
break even point in $ = 340,000 units x $6 = $2,040,000
alternative 2:
break even point in units = $760,000 / $1.25 = 608,000 units
break even point in $ = 608,000 units x $5 = $3,040,000
Which course of action do you recommend?
If I had to choose between alternative 1 or 2, I would choose alternative 1.
Long-term creditors are usually most interested in evaluating
a) liquidity and solvency.
b) solvency and marketability.
c) liquidity and profitability.
d) profitability and solvency.
Answer:
d) Profitability and Solvency
Explanation:
The long term creditors are transacting with the company for a long term. The long term creditors are looking to the company for paying debt in the future . So long term creditors are looking on profitability ratios and solvency ratio to study on it.
Long-term creditors are usually most interested in evaluating a) liquidity and solvency.
What is Long-term creditorsBanks and bondholders, who lend money for a long time, are worried about how likely a borrower is to pay back their debts over a long period of time. Assessing liquidity means checking if the borrower can pay off its short-term debts, like interest or loan amounts.
Creditors use liquidity and solvency assessments to understand if a borrower is financially stable and will be able to repay their debt on time. This helps the creditors feel confident in the borrower's ability to make payments.
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A company uses the weighted average method for inventory costing. At the start of a period the production department had 28,000 units in beginning Work in Process inventory which were 44% complete; the department completed and transferred 169,000 units. At the end of the period, 26,000 units were in the ending Work in Process inventory and are 79% complete. The production department had conversion costs in the beginning goods is process inventory of $103,000 and total conversion costs added during the period are $726,925. Compute the conversion cost per equivalent unit.
Answer: $4.38
Explanation:
Conversion costs are based on completed units so those units that are yet to be completed will be converted into equivalent units.
Units produced = Units completed and transferred out + equivalent WIP
= 169,000 + (26,000 * 79%)
= 169,000 + 20,540
= 189,540 units
Total Conversion costs = beginning conversion costs + conversion costs added during period
= 103,000 + 726,925
= $829,925
Conversion cost per equivalent share
= 829,925/189,540
= 4.3786
= $4.38
A company's December 31 work sheet for the current period appears below. Based on the information provided, what is net income for the current period?Unadjusted Trial Balance AdjustmentsDebit Credit Debit CreditCash 1,975Accounts Receivable 1,000 875Prepaid insurance 1,600 650Supplies 330 115Equipment 8,320Accumulated depreciation—equipment 720 190Accounts payable 1,140Owner, Capital 9,110Owner, Withdrawals 1,050Fees earned 7,250 875Rent expense 1,300Salaries expense 2,300Utilities expense 345Insurance expense 650Supplies expense 115Depreciation expense—equipment 190Totals 18,220 18,220 1,830 1,830
Answer:
Net income for the current period is $2,350.
Explanation:
Calculation of Net Income for the Current Period.
$ $
Fees earned 7,250
Less Expenses :
Rent expense 1,300
Salaries expense 2,300
Utilities expense 345
Insurance expense 650
Supplies expense 115
Depreciation expense—equipment 190 (4,900)
Net Income / (Loss) 2,350
A company found that they had lost $30,000 in scrap and rework. They had spent $35,000 in prevention-related activities. The ratio of prevention cost to failure cost is ______________.
Answer:
7:6
Explanation:
A company lost $30,000 in scrap and rework
They spent $35,000 in prevention related activities
Therefore the ratio of prevention cost to failure cost can be calculated as follows
= 35,000/30,000
= 7:6
Hence the ratio of the prevention cost to failure cost is 7:6
A Multilevel Approach to the Study of Motor Control and Learning (2nd Edition)
The average reader will spend 7 hours and 44 minutes reading this book at 250 WPM (words per minute).
How quickly can you read this book?
Answer:
7 hours and 44 minutes
Explanation:
According to the question, the data provided is as follows
Time taken by average reader = 7 hours and 44 minutes
Number of words per minute = 250
Based on the above information, the number of hours to read this book in quickly is 7 hours and 44 minutes as this is equivalent to the time taken by the average reader
So the same is to be considered for reading the book at 250 WPM
When comparing Real Estate Investment Trusts (REITs) to Real Estate Limited Partnerships (RELPs), which of the following statements are TRUE?I REITs allow for flow through of gainII RELPs allows for flow through of gainIII REITs allow for flow through of lossIV RELPs allow for flow through of lossa. I and II onlyb. III and IV onlyc. I, II, IVd. I, II, III, IV
Answer: c. I, II and IV
Explanation:
A real estate investment trust is a company which owns, and operates real estate while real estate limited partnership (RELP) is a real estate investment whereby several investors use their money to either develop or buy real estate.
Based on the information in the question, the true options are:
• REITs allow for flow through of gain
• RELPs allows for flow through of gain
• RELPs allow for flow through of loss
It should be noted that REITs doesn't allow for flow through of loss while RELP is a tax sheltered investment and therefore it gives room for gain and loss.
Two investment centers at Marshman Corporation have the following current-year income and asset data:
Investment Investment
Center A Center B
Investment center income $415,000 $525,000
Investment center average invested assets $2,400,000 $1,950,000
The return on investment (ROI) for Investment Center B is:__________
a) 371.4%
b) 26.9%
c) 24.1%
d) 39.2%
Answer:
b) 26.9%
Explanation:
Computation of the return on investment (ROI) for Investment Center B
Using this formula
Return on investment (ROI) =Investment center income/Investment center average invested assets
Let plug in the formula
Return on investment (ROI) =$525,000/$1,950,000
Return on investment (ROI) = 0.269×100
Return on investment (ROI) = 26.9%
Therefore the return on investment (ROI) for Investment Center B is 26.9%
You have been asked to give a presentation to your co-workers in the digital marketing department at your current employer on what factors should be considered in assessing the effectiveness of your firm’s search and display ads more accurately. Choose any two of the five issues related to measuring the effectiveness of search and display ad that are discussed in the Digital Marketing reading and briefly outline what you will tell your co-workers.
Answer:
Five metrics for measuring the effectiveness of Display Ads are:
ImpressionsClick-Through RateViewersConversions/Return on Investment (ROI)Returning visitorsI will speak on item 1 and item 4 using the following outlines:
Item 1:
Unfilled ImpressionsFluctuating ImpressionsHow ad impressions are measured by GoogleItem 2:
How to calculate Conversions/ROI on Display ADsConversion TrackingImproving Conversion and ROI on Display ADsCheers!
101. Present Value Find the present value that will grow to $5000 if interest is 3.5% compounded quarterly for 10 yr
Answer:
PV= $3,528.81
Explanation:
Giving the following information:
Future value= $5,000
Interest rate= 3.5% compounded quarterly
Number of periods= 10 years
First, we need to determine the quarterly interest rate and the number of periods:
i= 0.035/4= 0.00875
n=10*4= 40
Now, using the following formula, we can calculate the present value:
PV= FV/(1+i)^n
PV= 5,000/(1.00875^40)
PV= $3,528.81
Lossing Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below: Original Budget Actual Costs Variable overhead costs: Supplies $ 8,300 $ 8,490 Indirect labor 10,770 10,120 Fixed overhead costs: Supervision 16,110 14,540 Utilities 15,400 15,450 Factory depreciation 58,130 59,650 Total overhead cost $ 108,710 $ 108,250 The company based its original budget on 8,300 machine-hours. The company actually worked 8,260 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 8,190 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?
Answer:
$1,188 unfavorable
Explanation:
Volume variance = Budgeted fixed overhead cost - Fixed overhead applied to work in process.
$89,640 ÷ 8,300 machine hours
= $10.8 per machine hours
= $89,640 - ( 8,190 machine hours * $10.8 per machine hours )
= $89,640 - $88,452
= $1,188 unfavorable
Financial accounting information ________.
should be incomplete in order to confuse competitors
should be prepared differently by each company
provides investors guarantees about the future
summarizes what has already occurred
Pretty sure it is D. summarizes what has already occurred.
Definitely not A or B. And C is incorrect because this branch of accounting tracks passed transactions, and does not guarantee anything in the future. Hence D.
Total quality management (tqm) emphasizes all but which one of the following?a. Team-based work design and the creation of a total quality culture b. Six Sigma accuracy in performing tasks c. Involvement and empowerment of employees at all levels d. Continuously improving the performance of every task and value chain activity e. Benchmarking and total customer satisfaction
Answer:
c. Involvement and empowerment of employees at all levels
Explanation:
Total quality management refers to managing the organization in order to develop a success in the long run by considering the low level workers to the high level executive, and at the same time focused on quality improvement and the customer satisfaction
Here are the following points to become important for an organization
1. Quality improvement, management leads to long term success for organization and customers
2. The deficiencies could be determined by performing the work and can be corrected through providing the training, education, etc
3. If the product contains high quality that meet the needs of the customers than it would lead to high customer satifaction
4. And, in case if there is few defective product so the company is in a position to save the cost
Natalie and Curtis are thinking about borrowing an additional $20,000 to buy more kitchen equipment.
The loan would be repaid over a 4-year period.
The terms of the loan provide for equal semi-annual installment payments of $2,500 on May 1 and November 1 of each year plus interest of 5% on the outstanding balance.
Dividends on preferred stock were $1,250.
Since this is the first year of operations and the beginning balances are zero, use the ending balance as the average balance, where appropriate.
Required:
(a) Calculate the following ratios:
1. Current ratio
2. Receivables turnover
3. Inventory turnover
4. Debt to total assets
5. Times interest earned
6. Gross profit rate
7. Profit margin
8. Asset turnover
9. Return on assets
10. Return on common stockholders' equity
(b) Comment on your findings from part (a).
(c) Based on your analysis in parts (a) and (b), do you think a bank would lend Cookie & Coffee Creations Inc. $20,000 to buy the additional equipment?
Explain your reasoning.
(d) What alternatives could Cookie & Coffee Creations consider instead of bank financing?
Answer:
(a) Ratios:
1. Current ratio
= Current Assets/Current Liabilities
= $113,666/ $ 32,676
= 3.48
2. Receivables turnover
= Net Sales/Average Accounts Receivable
= $462,500/3,250
= 142.31
3. Inventory turnover
= Cost of goods sold/Average Inventory
= $231,250/17,897
= 12.92
4. Debt to total assets Ratio
= Total Debts/Total Assets * 100
= $38,676/$155,466 * 100
= 25%
5. Times interest earned
= EBIT/Interest Expense
= $98,863/413
= 239.38
6. Gross profit rate
= Gross profit/Sales * 100
= $231,250/462,500 * 100
= 0.5
= 50%
7. Profit margin
= Net Income/Sales * 100
= $78760/462,500 * 100
= 0.17
= 17%
8. Asset turnover
= Sales/Average Assets
= $462,500/155,466
= 2.97
9. Return on assets
= Net Income/Assets * 100
= $78,760/155,466 * 100
= 50.66%
10. Return on common stockholders' equity
= Net Income/Stockholders' Equity * 100
= $78,760/116,790 * 100
= 67.44%
(b) Comment on your findings from part (a).
1. Current ratio : This ratio shows CCC INC.'s ability to settle its current liabilities or financial obligations from its current assets. The company can comfortably settle its current financial obligations 3.48 times without borrowing. It only needs to manage its working capital well so that it does not run out of cash.
2. Receivables turnover : This ratio shows CCC INC.'s ability to collect its accounts receivable. It does not take long for CCC INC. to receive cash from credit customers. When the receivables turnover of 142.31 is divided into 365 days, we find that it takes only 2.6 days to collect from customers. This is very good.
3. Inventory turnover : This ratio shows how many times the company turns over its inventories. Its inventory is turned 12.92 times in a year.
4. Debt to total assets Ratio: This ratio shows the company's debts are only 25% of the total assets. The remaining 75% of the assets are contributed by equity. The company can still take on more debts when necessary.
5. Times interest earned : The interest expense is covered 239 times by the EBIT. This shows the company can settle its interest expense from current earnings.
6. Gross profit rate : This ratio shows the ability of the management to manage the cost of goods sold relative to the net sales. The gross profit represents 50% of the sales.
7. Profit margin : The profit ratio or margin ratio shows the ability of the managers to ensure that operating expenses do not consume the sales revenue. They could only preserve 17% of the sales revenue for the owners after expenses and income taxes.
8. Asset turnover : The company generated 2.97 times of the assets it used for operations. This looks good and sound.
9. Return on assets : What is the return made from the assets? This ratio shows that CCC INC. generates 50.66% net income on each of the assets it has deployed in operations.
10. Return on common stockholders' equity : The company generates 67.44% returns for the stockholders.
(c) The company does not need to borrow $20,000 from any bank with so much in cash.
(d) Alternatives to bank financing:
The company can self-finance equipment worth $20,000 and even invest its idle cash into some marketable securities.
Explanation:
a) Data:
Balance Sheet October 31, 2017
Assets
Current assets
Cash $86,219
Accounts receivable 3,250
Inventory 17,897
Prepaid expenses 6,300 $113,666
Property, plant, and equipment
Furniture and fixtures $12,500
Accumulated depreciation—
Furniture and fixtures (1,250) 11,250
Computer equipment 4,200
Accumulated depreciation—
computer equipment (600) 3,600
Kitchen equipment 29,000
Accumulated depreciation—
kitchen equipment (2,050) 26,950 41,800
Total assets $155,466
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable $ 5,848
Income tax payable 19,690
Dividends payable 700
Salaries and wages payable 2,250
Interest payable 188
Note payable—current portion 4,000 $ 32,676
Long-term liabilities Note payable—
long-term portion 6,000
Total liabilities $38,676
Stockholders’ equity :
Paid-in capital
Preferred stock, 2,800 shares issued and
outstanding $ 14,000
Common stock, 25,930 shares issued,
25,180 outstanding 25,930 $39,930
Retained earnings 77,360
Total paid-in capital and retained earnings 117,290
Less: Treasury stock (750 common shares) (500)
Total stockholders’ equity 116,790
Total liabilities and stockholders’ equity $155,466
Income Statement
Year Ended October 31, 2017
Sales revenue $462,500
Cost of goods sold 231,250
Gross profit 231,250
Operating expenses
Salaries and wages expense $92,500
Depreciation expense 3,900
Other operating expenses 35,987 $132,387
Income from operations 98,863
Other expenses Interest expense 413
Income before income tax 98,450
Income tax expense 19,690
Net income $ 78,760
Dividends for preferred stock 1,250
Dividends for common stock 150
Retained earnings $ 77,360
If he earns 5 percent on his money, how much must he deposit at the start of his studies to be able to withdraw $9,000 a year for three years?
Answer:
He must deposit $24,509.23 at the start of his studies.
Explanation:
The amount to be deposited, PV is calculated as follows :
r = 5
Pmt = $9,000
P/yr = 1
n = 3
Fv = $ 0
Pv = ?
Using a Financial Calculator, the amount to be deposited, PV is $24,509.23.
At the beginning of 2018, ABC began offering a 1-year warranty on its products. The warranty program was expected to cost ABC 4% of net sales. Net sales made under warranty in 2018 were $180 milion. Five percent of the units sold were returned in 2018 and repaired or replaced at a cost of $5.3 million. The amount of warranty expense on ABC's 2018 income statement is
A) $27.0 million.
D) S5.3 million.
B) S9.0 million.
C) S7.2 million.
Answer:
$7.2 million
Explanation:
Calculation for the amount of warranty expense on Angel's 2016 income statement
Using this formula
Warranty expense =Net sales ×Expected percentage of net sales
Let plug in the formula
Warranty expense=$180 million×4%
Warranty expense=$7.2 million
Therefore the amount of warranty expense on Angel's 2016 income statement will be $7.2 million
Which of the following interactions with vendors would potentially lead to inventory reductions?
a. reduced lead times
b. increased safety stock
c. less frequent purchases
d. larger batch quantities
e. longer order intervals
Answer: a. reduced lead times
Explanation:
Lead time in a process refers to the amount of time it takes from the process's initiation to its conclusion. In general in Business, the shorter the lead time of a process, the better for the business as it usually leads to higher productivity, output and revenue levels.
Same goes for the reduction of lead times in transaction with vendors. With a shorter lead time, the process of making goods available for sale would be less and thus the goods can be sold in the market quicker therefore reducing inventory levels.
In the commitment stage of the change process the individual level of commitment can continue to change.a) trueb) false
Answer:
True
Explanation:
In the commitment stage of the change process the individual level of commitment can continue to change.
The individual level of commitment can continue to change as the individual gains experience with the change and continues to find ways to refine and improve the change. The commitment stage is the threshold for change action.
Commitment to change is a force that propels an individual to take action that is deemed necessary for successful implementation of the change.
"Which statements are TRUE about IO tranches? I When interest rates rise, the price of the tranche falls II When interest rates rise, the price of the tranche rises III When interest rates fall, the price of the tranche falls IV When interest rates fall, the price of the tranche rises"
The available options are:
A. I and III
B. I and IV
C. II and III
D. II and IV
Answer:
C. II and III
Explanation:
IO tranche which is an acronym for Interest Only tranche is defined as a form of tranche which earns interest only from a secured loan which is derived from Principal Only tranche.
However, Interest Only tranche is quite different from a typical bond, simply because when market interest rate increases the rate of prepayment decreases, which in turn makes the rate of maturity to be longer. Thereby when interest rates increase, prices increase, and vice versa.
Hence the true statements are:
II When interest rates rise, the price of the tranche rises
III When interest rates fall, the price of the tranche falls