The degree of customer contact measures the amount of time the customer is B. The amount of time the customer is in the service delivery system while the service is being produced.
Fantastic clients are Advocates. High-quality customers, after they surely are becoming exceptional price out of your product, become extra than just glad. They do greater than just references. They provide you with extra than just excessive consumer pleasure marks.
Clients want your services or products to be characteristic of the manner they want with the intention to resolve their problem or preference. Clients have precise budgets with which they can purchase a service or product. Your services or products desire to be a convenient strategy to the characteristic your customers are looking to meet.
These are variables that include the event, the benefit sought, consumer status, consumer charge, loyalty rate, readiness stage, and purchasers' attitude. They include loyalty, value, frequency of purchase, quantity of purchase, time of year, time concerned in buying decision, and where a customer purchases the product.
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suppose you are earning $50,000 accounting profit in your current laundromat business. if your other options were to earn $50,000 accounting profit running a yogurt shop, or $45,000 being a florist, or $60,000 running a beauty shop, what is your economic profit?
The economic profit is a loss of $10,000.
Revenue minus explicit costs minus opportunity cost equals economic profit (or loss). Explicit costs include all costs that are typically accounted for, such as labor, materials, marketing, depreciation, and taxes.
Imрliсit costs are the opportunity costs, or the next best alternative that you could have chosen.
economic profit = revenue - explicit costs - opportunity cost
= $50,000- $60,000 = -$10,000.
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a sheep farm produces $30 worth of wool. a suit manufacturer produces $60 worth of suits. a retail outlet sells a suit to a customer for $180. the change in gdp would be
A manager that views most employees as motivated to do work is operating under blank______, while a manager that views most employees as lazy, is operating under blank______.
Answer: Theory Y; Theory X
ased on the free cash flow valuation model, the value of weidner co.'s operations is $1,200 million. the company's balance sheet shows $80 million in accounts receivable, $60 million in inventory, and $100 million in short-term investments that are unrelated to operations. the balance sheet also shows $90 million in accounts payable, $120 million in notes payable, $300 million in long-term debt, $50 million in preferred stock, $180 million in retained earnings, and $800 million in total common equity. if weidner has 30 million shares of stock outstanding, what is the best estimate of the stock's price per share? a. $27.67 b. $30.43 c. $33.48 d. $24.90 e. $36.82
The best estimated stock price per share of free cash flow valuation model = $27.67
Free cash flow :
Free cash flows( FCF) from operations is the cash that a company has left over to pay back stakeholders similar as creditors and shareholders. Because Free cash flow represents a residual value, it can be used to help value pots.
Evaluation :
the value of Weidner Co.'s operations = $1,200 million
accounts receivable = $80 million
short-term investments = $100 million
accounts payable = $90 million
notes payable = $120 million
long-term debt = $300 million
preferred stock = $50 million
retained earnings = $180 million
total common equity = $800 million
shares of stock outstanding = 30 million
Now,
The total intrinsic value = value of operation + short-term investments
The total intrinsic value = $1200 million + $100 million
= $1300 million
Thus,
the total value of the equity = Total intrinsic value - Debt - preferred stocks - notes payable
The total value of the equity = $1300 million - $300 million - $50 million - $120 million
= $830 million
therefore,
the stock's price per share = Total value of equity ÷ Total outstanding stock
= 830 million ÷ 30 million
= $27.67.
Hence , the stock price per share = $ 27.67
Stock price :The market price per share of stock, or the" share price," is the most recently price that a stock has traded for. It's a function of request forces, being when the price a buyer is willing to pay for a stock meets the price a dealer is willing to accept for a stock.
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What term is used to describe the practice of unloading materials from an incoming trucks or rail cars and loading these materials onto outbound trucks or rail cars, with little or no storage or warehousing in between?.
Consolidation is the logistics process of removing cargo off an incoming truck or railway and loading it immediately onto an outgoing truck or railcar with little or no storage in between.
How would you define consolidation?The consolidation process or act; the state of consolidation. The act of merging; especially, the joining of two or more corporations through the dissolution of the former and the formation of the latter into a single new entity.The Latin word consolidation, which meaning "to merge into one body," is where the word consolidate derives from. In any situation, consolidating entails combining a number of smaller objects into a single, larger group. For instance, a traveler might combine all of their belongings into one sizable bag.Debt consolidation is the process of combining all of your debts into a single loan or monthly payment, including credit card bills and other loans. Consolidating your debts could simplify or reduce your monthly payments if you have a number of loans or credit card accounts.To learn more about consolidation refer to:
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on december 1, 2001 pimlico made sales to a customer in india and recorded accounts receivable of 10,000,000 rupees. the customer has until march 1, 2002 to pay. on december 1, 2001, pimlico paid $500 for a put option to sell rupees at a strike price of $2.30 per 100 rupees on march 1, 2002, which was the spot rate on december 1, 2001. on december 31, 2001, the spot rate was $2.80 per 100 rupees and the option premium was $0.004 per 100 rupees. if the spot rate on march 1, 2002 was $2.45 per 100 rupees, what is the foreign currency exchange gain or loss that should be recorded that day?
The foreign exchange gain that should be reported that day is $50,000.
How are foreign exchange gains determined?
A foreign exchange gain or loss occurs when a firm buys, sells, or exchanges products and services in a foreign currency and that currency fluctuates in respect to their home currency. It could lead to differences in the values of the financial commitments and assets, which must be periodically recognized until they are fully resolved.
Subtract the account receivable's original seller currency value from the value that was converted to seller currency at the time of collection to determine any forex gain or loss. A gain in foreign exchange is represented by a positive outcome, whereas a loss in foreign exchange is represented by a negative consequence.
In the above question,
Accounts receivables= $10,000,000
Strike price= $2.30
Spot rate= $2.80
forex gain or loss= (10,000,000/100)*(2.80-2.30)
forex gain or loss= $50,000
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as a project manager, you want to integrate change management into your project. to prepare for the adoption of your recommended changes and to gather information, you incorporate surveys, flowcharts, and culture mapping. these actions represent which change management best practice?
As a project manager, Incorporating surveys, flowcharts, and culture mapping represent the use of tools for the integration of change management.
Before any changes in the management, the project manager needs to understand, communicate and ask about the ways and consequences of doing and then recommend changes. For gathering information regarding previous work and changes that require, managers should use certain tools such as-
flowcharts for showing up the development process of the project,culture mapping in order to illustrate the values of the company, surveys were done to know what employees have to say about the project and its process, norms, stakeholder input, feedback mechanism, etc.To know more about project managers, follow the below link:
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a company assigns overhead based on direct labor costs. the predetermined overhead rate is $3.00 per direct labor dollar. a job that used a total of 20 direct labor hours ($400 in total direct labor costs) would be assigned $
Answer: $1200
Explanation:
which of the following is a metric of sales programs in variable pay plans? question 45 options: return on investment turnover costs accident rates increase in market share
Increase in market share.
Increasing market share entails increasing your company's sales effort and employing new or enhanced methods to assist you get somewhere.
What is variable pay plan?Variable pay, also known as incentive pay or commission, is a method of compensating employees beyond the hours worked and encouraging them to meet goals.Performance-based variable pay assists in rewarding and motivating hardworking employees. An increase in variable pay raises the organization's costs. Organizations can use variable pay to link compensation to revenue and financial performance.Where the fixed-to-variable pay ratio is 60:40. The fixed-to-variable pay ratio for non-sale jobs is 80:20. Variable pay results in a highly motivated employee because their performance directly correlates to a higher incentive. Variable pay, on the other hand, breeds unhealthy competition.To learn more about variable pay refer to :
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on november 1st, chipotle corp. received a $2,000 note from a customer with a rate of 9% interest that is due in six months. the adjusting entry on december 31st for this note receivable would be:
The adjusting entry of interest rates on december 31st for this note receivable would be: $7,000.
What are interest rates?
In relation to the amount lent, deposited, or borrowed, the amount of interest payable each period is expressed as an interest rate (called the principal sum). The amount lent or borrowed, as well as the interest payment, frequency of compounding, and the period of time during which it is lent, deposited, or borrowed, all affect how much interest will be charged overall. The rate calculated over a twelve-month period is the annual interest rate. Other interest rates are applicable over longer time frames, such a month or a day, although they are typically annualized.The interest rate has been described as "an measure reflecting the preference... for a dollar of now [income] over a dollar of future income."
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jen and alica are both u.s. citizens. jen opens a cafe in france. alicia buys equipment from a company in canada to use in a u.s.-based factory. whose action is an example of u.s. foreign direct investment?
When a company directly invests in new facilities to produce and/or market in another country, this is known as foreign direct investment (FDI).
What exactly is an FDI (foreign direct investment)?
A stake in a foreign company or project owned by a foreign investor, company, or government is known as foreign direct investment (FDI).
The decision to acquire a substantial stake in a foreign company or to buy it outright to expand operations to a new region is typically referred to by this term. Typically, the term is not used to refer only to stock investments in foreign companies. Because it establishes connections between economies that are both stable and enduring, foreign direct investment (FDI) is an essential component of international economic integration.
What is FDI, and what are its benefits and drawbacks?
Foreign direct investment boosts a nation's economy. Foreign direct investment (FDI) may impede domestic investment. By providing a subsistence workforce, FDI contributes to the expansion of human capital. Negative values can occasionally occur as a result of investments. Trades on the global market are made easier by FDI, which enables an increase in exports.
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during her performance appraisal, jane received feedback from her peers, supervisors, subordinates, and customers. this type of feedback is called . a. 180-degree feedback b. upward feedback c. 360-degree feedback d. downward feedback
Jane received feedback from her peers, supervisors, subordinates, and customers. This type of feedback is called 360-degree feedback.
A 360-degree feedback process involves gathering feedback from an employee's peers, superiors, and subordinates as well as from the employee themselves.
Employees that participate in a 360-degree feedback system or process receive private, anonymous feedback from those who work with them. The management, colleagues, and direct reports of the individual are frequently included in this.
Sometimes behavioral details for each rating are included in 360-degree feedback. For instance, one 360-degree feedback sample evaluated the individual as "including the following description: "This person is quite silent in meetings and does not communicate well with their management. Usually, they merely remain silent and make an effort to blend in."
Hence, Option C is correct.
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what is the first decision to be made when considering merchandise flow? multiple choice question. whether the merchandise will travel by truck, train, or plane who will transport the merchandise where the merchandise will go how much it will cost to transport the merchandise
Selecting a transportation business is the first choice that must be made to ensure that goods flow. Which of the following were included in the marketing channels. a marketing channel when the maker sells directly to the customer; there are no middlemen involved.
What are the steps in the marketing process?
Purchasing merchandise often involves four processes, including:
Determine the sources of the goods.
Talk to manufacturers about a deal.
choosing goods for purchasing.
Purchase goods for the store.
acquiring plans.
Examine vendors in depth.
Assigning prices.
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based on the weight of the consumer price index (cpi), the price of rental housing increases by 15 percent and that of owned housing by 5 percent. during the same year, the price of gasoline falls by 22 percent. we can say that
It is anticipated that the CPI would increase during the mentioned year, assuming all other variables remained same.
The month change in prices paid by American consumers is tracked by the Consumer Price Index (CPI). The CPI is calculated by the Bureau of Labor Statistics (BLS) as a weighted sum of prices for a selection of products and services that is indicative of total consumer spending in the United States. One of the most widely used indicators of deflation and inflation is the CPI. In contrast to the producer price index (PPI), which tracks changes in the prices paid to American producers of goods and services, the CPI report employs a different questionnaire technique, price samples, and index weights.
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at the beginning of 2019, robotics inc. acquired a manufacturing facility for $13.1 million. $10.1 million of the purchase price was allocated to the building. depreciation for 2019 and 2020 was calculated using the straight-line method, a 20-year useful life, and a $2.1 million residual value. in 2021, the company switched to the double-declining-balance depreciation method. what is depreciation on the building for 2021?
In 2021, the company switched to the double-declining-balance depreciation method. The depreciation on the building for 2021 is $668,462.
Cost of Building $10,100,000
Less: Residual value $2,100,000
Depreciable cost $8,000,000
Divide by Useful life 20
Annual depreciation $400,000
Accumulated depreciation $800,000 = 400000 × 2
Cost of Building $10,100,000Less: Accumulated depreciation $800,000
Book value of Building $9,300,000
Less: Residual value $610,000
Remaining Depreciable cost $8,690,000
Divide by Remaining useful life 13 = 15-2
Depreciation $668,462
The projected worth of a fixed asset after the end of its lease term or usable life is the residual value, commonly referred to as salvage value. In lease agreements, the residual value is one of the lessor's main methodologies for calculating the lessee's monthly lease payments. A common guideline is that an asset's residual value decreases as its usable life or lease duration lengthens.The accounting technique of spreading out the cost of a tangible item over its useful life is known as depreciation. The amount of depreciation shows how much of an asset's worth has been used.Learn more about Residual value, here
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Mike owns swibel trucking, a successful trucking business, as a sole proprietor. After many successful years in business, one night he decides he wants to change his business to a partnership so that he can share the burden and devote more time to pursue his hobby of duck watching full time. What steps must he take to change the type of business entity to a partnership?.
Mike is not allowed to change the type of business entity to a partnership. It is because none as a sole proprietor can convert to another business form at the proprietor's will.
A partnership can be defined as a form of business where two or more people share ownership. In a partnership, the people who is involved in there have a responsibility for managing the company and the income or losses the business generates. There are some characteristics from partnership, such as:
Partnerships have sharing of profits and losses.Partnerships have mutual agency.Partnerships have unlimited liability.Partnership have lawful business.Partnership have contractual relationship.Learn more about partnership here https://brainly.com/question/19988417
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At the end of the accounting period anderson company had $4,500 in accounts receivable and $500 in its allowance for doubtful accounts account. Based on this information the net realizable value of accounts receivable is?.
The net realizable value of accounts receivable will be $4000, considering the value of accounts receivable and allowance.
Given information:
Accounts receivable = $4,500
Allowance for doubtful accounts = $500
Net realizable value of accounts receivable = $4,500-$500 = $4000.
The balance of money owed to a company for products or services delivered or utilized that have not yet compensated for by clients is known as accounts receivable (AR). On the balance sheet, accounts receivable are listed as a current asset. Any amount of money that individuals owe for transactions they made using credit is known as AR. Usually accounts receivables are part of company's working capital.
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aviva's company frequently needs a software specialist to update its highly unique computer systems. aviva is trying to determine if she should pay the high salary and benefits of a full-time employee or use a contingent employee when needed. what is one reason aviva would reject the idea of using a contingent workforce?
Aviva's company frequently needs a software specialist to update its highly unique computer systems. one reason Aviva would reject the idea of using a contingent workforce is the high cost of turnover. Option C
This is further explained below.
Who is a software specialist?Generally, A computer expert who is also proficient in the usage of a particular piece of computer software is known as a software specialist.
Developing training on software systems, doing system tests to discover software failure spots, and working with customers to collect requirements are some of the job activities that you will be responsible for if you choose this line of employment.
The business owned by Aviva has a regular need for the services of a software professional to maintain its highly specialized computer systems.
Because of the significant expense associated with employee turnover, Aviva is likely to reject the concept of hiring a contingent workforce. Alternative C
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the costs of restructuring an asset so that it has new capabilities, but where it is uncertain if the restructuring will provide future benefits, should be
The expenses of reworking an asset to give it new capabilities should be considered when it is unclear whether the reworking will result in future advantages is depreciated over future periods benefited and capitalised.
Throw light on the concept of depreciation of assets.The accounting approach of depreciation can be used to spread out a tangible item's cost over the period of its useful life using the accounting approach of depreciation. Depreciation indicates how much of an asset's worth has been expended. It makes it possible for companies to buy assets over a predetermined period of time and profit from those assets.
Equipment and machinery are expensive assets. Companies can utilize depreciation to spread out the cost of an asset rather than realizing the entire cost in the first year, and to match corresponding revenues and expenses in the same reporting year.This makes it possible for a company to depreciate an asset's value over time, especially during its useful life.
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in the public sector, what is one of the biggest complaints about unions? unions require too much of a time commitment from management. unions do not get enough money in dues to operate effectively. unions create unrealistic pension programs for employees. unions do not negotiate aggressively enough.
The most common complaint about unions in the public sector is that they create unrealistic pension plans for employees.
What is public sector?The public sector, also known as the state sector, is a sector of the economy that includes both public services and public enterprises. The public sector is the portion of the economy made up of all levels of government and government-controlled businesses. It excludes private businesses, non-profit organizations, and households. Public sectors include the military, law enforcement, infrastructure, public transportation, public education, and health care, as well as those working for the government itself, such as elected officials. In India, there are three types of organizations used for public sector enterprises. (1) Departmental Undertaking, (2) Statutory (or Public) Corporation, and (3) Government Company are the three types.To learn more about public sector, refer to:
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the stock of business adventures sells for $60 a share. its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows: dividend stock price boom $ 2.00 $ 73 normal economy 1.50 63 recession 0.70 59 required: a. calculate the expected holding-period return and standard deviation of the holding-period return. all three scenarios are equally likely. (do not round intermediate calculations. round your answers to 2 decimal places.) b. calculate the expected return and standard deviation of a portfolio invested half in business adventures and half in treasury bills. the return on bills is 4%. (do not round intermediate calculations. round your answers to 2 decimal places.)
If the stock of business adventures sells for $60 a share. Expected return is 10.66%, and the standard deviation is 8.64%.
Expected return and standard deviationa. Expected return
Holding period return = (dividend + capital gain ) / purchase price.
Boom: (2 + 73 - 60 ) / 60 = 25%
Normal: (1.5 + 63 - 60 ) / 60 = 7.5%
Recession: (0.7 + 59 - 60 ) / 60 = -0.5%
Expected return = (25 % + 7.5 % - 0.5%) / 3
Expected return = 32 / 3
Expected return= 10.66%
Standard deviation:
Standard deviation = √ (25% - 10.66%)² + ( 7.5% - 10.66%)² + ( -0.5 -10.66%)² / 3
Standard deviation = √ 205.6356 + ( - 106.1356) + 124. 5456 /3
Standard deviation = √224.0456% /3
Standard deviation = √ 74.68%
Standard deviation = 8.64%
b . Expected return
E(rp) = wi[E(r)]+w2[rf]
Expected return = 50%× 10.66% + 50%×4%
Expected return =7.33%
Standard deviation = 50%× 8.64%
Standard deviation = 4.32%
Therefore the expected return and standard deviation for part a is: 10.66% and 8.64%.
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employees at a toy-manufacturing factory are let go because robots have been installed to replace humans. what type of unemployment faces the laid-off workers? group of answer choices seasonal cyclical structural frictional
In a situation where factory workers are laid off because robots have been installed to replace human labor, this corresponds to a type of structural unemployment.
What is structural unemployment?It corresponds to a process in the economy of a place where jobs are available but there are no candidates with the necessary qualifications to effectively fill such positions.
To increase the skills of the unemployed in the event of an increase in structural unemployment, public and private incentives are needed to help obtain skills that enable people to enter the labor market, such as public policies that provide technical education and training.
Therefore, even if hypothetical, the situation described by the question where robots replace human work corresponds to a type of structural unemployment, since humans were replaced because they did not have the same work capacity as robots.
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all about town is a chain of clothiers with locations in malls around the country. it maintains records on the average customer traffic at each location month by month, as well as sales at each facility, net profits for each, and so on. this type of record keeping is an example of a(n) system.
All About Town is a clothing retailer with locations in shopping malls across the country. It keeps track of average customer traffic at each location month after month, as well as sales, net profits, and so on. This is an example of an information technology system.
What exactly does customer traffic imply?The number of customers who enter your store is referred to as foot traffic in retail. In general, increased foot traffic leads to increased revenue. Sensors at store entrances are commonly used in retail traffic counting systems to count the number of visitors. Infrared technology is used to track customers entering and exiting the store by counting each time a beam is broken. Foot traffic data, also known as footfall data, is the number of customers who pass through and visit specific locations such as retailers (retail stores) or shopping malls. The data shows the number of people in the area at specific times, the frequency of store visits, and the length of stay.To learn more about average customer traffic, refer to:
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roductivity is defined as multiple choice question. output produced per hour. workers employed per hour. output produced per worker. workers per unit of output.
The quantity of goods and services produced (output) and the quantity of inputs required to produce those goods and services are used to calculate productivity, which is a measure of economic performance.
What is the relationship between GDP and productivity?Firms are able to generate more revenue, a higher Gross Domestic Product, and a higher level of output for the same amount of input when productivity rises.
Why is it important to increase productivity?An economy can produce and consume more goods and services for the same amount of work as productivity increases. Individuals (consumers and workers), business leaders, and analysts (such as statisticians and policymakers) all place a high value on productivity.
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suppose the store owner actually pays $1 to buy each copy of the magazine and sells to customers for $2 per copy. if magazines left at the end of the week have no salvage value and any unmet demand is lost, then is it better to stock 3 or 4 copies of the magazine at the start of a week to maximize the expected profit?
It is better to stock 3 copies of the magazine at the start of the week to maximize the expected profit.
What is profit?
In accounting, a profit is an income that is given to the owner during a successful market process of production (business). Profitability, which is the owner's primary interest in the revenue process of market production, is measured by profit. There are several profit metrics that are frequently used. Income generation and distribution must always be balanced in order for income to be formed in market production. Within the review period, the generated income is consistently distributed as economic value to the production's stakeholders. The portion of income formation that the owner is able to retain for themselves during the income distribution process is referred to as the profit. Profit is among the main drivers of economic prosperity because it creates opportunities for growth in both income and production. In this context, the terms "income," "profit," and "earnings" are interchangeable.
If the store owner stocks 3 copies of the magazine at the start of the week, the expected profit is $3. If the store owner stocks 4 copies of the magazine at the start of the week, the expected profit is $4.
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t.l. franklin corporation has three costs: a, which is variable; b, which is fixed; and c, which is semivariable. the company uses the high-low method and extracted the following data from its accounting records: at 196,000 hours of activity, cost a totaled $2,642,000. at 110,408 hours, the low point during the period, cost c totaled $1,514,000; at 216,000 hours, the high point, cost c's fixed portion amounted to $2.00 per hour. at 144,000 hours of activity, the sum of costs a, b, and c amounted to $8,194,000. required: a. compute the variable portion (total) of cost c at 110,408 hours of activity. b. compute cost c (total) at 144,000 hours of activity. c. compute cost b (total) at 144,000 hours of activity.
T.l. franklin corporation has three costs : The answer is provided on the supporting sheet. All of the elements have been thoroughly explained and formatted. Refer to the supporting sheet for a more complete answer.
What is corporation?
A corporation is a legal body recognised by private and public law "born out of legislation"; a legal person in legal context) and recognised as such in law for certain purposes. 10 Charters were used to establish early incorporated entities . The majority of governments currently permit the formation of new corporations through registrations. Corporations come in a variety of forms, but are often classified by the law of the country in which they are chartered based on two factors: whether they can issue stock or if they are founded to generate a profit.
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Please refer to the photos attached below, I cannot type it here because of so called "inappropriate words"
________ flows are the physical products, raw materials, supplies, and so forth that flow along the chain.
Material Flows are the physical products, raw materials, supplies, and so forth that flow along the chain.
Logistics' subfield of material flow deals with the movement, packing, and supplies storage of various kinds of items. The movement of commodities within a corporation is referred to as an internal material flow.
On the basis of routine material flow assessments, the logistics chain from the supplier to the consumer can be successfully and sustainably Material Flows optimized. For the purpose of identifying weak places in the material supplies flow, these assessments of material flow keep track of processing, storage, and transport activities. Designing material flows for the sole purpose of reducing costs, speeding up throughput, and minimizing waste is Material Flows the goal.
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at a sales volume of 34,000 units, choice corporation's sales commissions (a cost that is variable with respect to sales volume) total $741,200. to the nearest whole dollar, what should be the total sales commissions at a sales volume of 32,300 units? (assume that this sales volume is within the relevant range.) (round intermediate calculations to 2 decimal places.)
Total sales commissions at a unit sales volume of 424,960.
What is volume?Volume is a measurement of three-dimensional space that is occupied. It is frequently numerically quantified using SI derived units or various imperial units. Interrelate is the definition of length. Every three-dimensional object requires some amount of space. The volume of this space is measured. Volume is defined as the space occupied by an object within the boundaries of three-dimensional space. It is also referred to as the object's volume capacity. Volume is a measurement of an object's capacity. For example, the volume of a cup is 100 ml if it can hold 100 ml of water up to the brim. Volume is also the amount of space occupied by a three-dimensional object.The complete question is :
At a sales volume of 35,000 units, Thoma Corporation's sales commissions (a cost that is variable with respect to sales volume) total $448,000.
To the nearest whole dollar, what should be the total sales commissions at a sales volume of 33,200 units? (Assume that this sales volume is within the relevant range.)
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which of these is not a common type of contract? group of answer choices a. firm-fixed price b. fixed price incentive fee c. cost plus incentive fee d. fixed cost fixed fee
The correct answer will be a) Firm fixed price which is not a common type of contract
A Firm-Fixed-Price (FFP) contract specifies a price that cannot be adjusted based on the contractor's cost experience in performing the contract.
This contract type imposes maximum risk and full responsibility for all costs and resulting profit or loss on the contractor. It provides the contractor with the greatest incentive to control costs and perform effectively while imposing the least amount of administrative burden on the contracting parties.
The main advantage of using a firm-fixed-price contract is that the agreed-upon price is guaranteed. The contractor assumes all risk in order to deliver within the contract price. Any overages or deviations must be borne by the contractor.
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the laurel corporation starts the year with a beginning inventory of 600 units at $5 per unit. the company purchases 1,000 units at $4 each in february and 400 units at $6 each in october. laurel sells 300 units during the year. laurel uses a periodic inventory system and the fifo inventory costing method. what is the amount of cost of goods sold? multiple choice $1,200 $1,868 $1,500 $1,800
With 600 units in its initial inventory priced at $5 each, the Laurel Corporation is off to a good start. The cost of items sold amounts to $ 1500.
Oldest units must be sold or utilized first according to a solid inventory management system, and inventory should only include recent acquisitions. This can be found in the FIFO costing approach. The FIFO technique gives management little to no control over the choice of units to affect recorded earnings. Inventory valuation and manufacturing costs are both constant and reasonable. The FIFO approach is also simple to use and comprehend.
The stock turnover rate and the frequency of price adjustments both affect how much inventory is valued at current cost. The inventory valuations will take into account the most recent pricing if stocks are changing quickly. The FIFO approach also has other restrictions.
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