Suppose that consumer spending is expected to decrease in the near future. If output is at potential output, which of the following policies is most appropriate according to the AS/AD model a. an increase in government spending b. an increase in taxes c. a reduction in government spending d. no change in taxes or government spending. 4. What tool of monetary policy will the Federal Reserve use to increase the federal funds rate from 1% to 1.25%? A.
Some of the benefits were reduction in lead-time by four weeks, allowed planners to readjust forecasts to meet changes in demand, 16% increase in production, and product availability increased to 99.9% from 97.9%. These numbers are based of 45 SKUs that were very similar and produced in a single factory, and their next question was if they should implement the SCO pilot system across all SKUs. I believe that Hugo Boss should only apply the SCO system to all of the NOS products due to the fact that they stay the same for 3 years. If they applied to the “fashion” products there is a lot more risk and could be more costly since fashion items never repeat. Although there is opportunity to produce more fashion items last minute to meet demand, I do not think that all items would need
Companies and their independent accountants or auditors should report the effectiveness of the companies internal controls based on these six principles. Publicly traded companies or those planning to go public are required to maintain internal controls and ensure compliance of government regulations. Company Evaluation As it relates to internal controls, the LJB Company is meeting and or adhering to some of the regulation requirements of the Sarbanes-Oxley Act within the daily operations of the business. I have provided a list below of the current processes being used within LJB Company that are being done exceptionally well. Establishing Responsibility: It is important to designate only one individual to handle specific tasks.
Honors Biology Final Lab Report June 9 2009 Problem: How does caffeine affect your heart rate? Hypothesis: Caffeine, as a stimulus would act to raise the resting heart rate. Approximately two bpm rise per mg per oz. Of caffeine. Procedure: • Gather a test group of 15 people who have not done any strenuous activity in previous hour, also no caffeine for 8 hours (to get resting heart rate).
The audit objectives auditors use to perform year-end sales cutoff tests are to determine if the information they obtained by the confirmation reduces the audit risk level. This has a heavy emphasis on the materiality of the account being assessed, and the lower the audit risk the better. The sales cutoff tests are usually performed based on the existence and completeness assertions regarding the accounts receivable balance (SAS No. 67, AU Section 330.09). 2.
This method is superior to the book value method since it is forward looking. It also takes into account future value creation, as well as for uncertainties in the industry and macroeconomic factors. Alternative methods are the EBITDA multiple and the Value-Driver Formula. The EBITDA multiple applies today’s value to future EBITDA. This method could be misleading, as it accounts for growth twice.
Management can decrease the COGS/Sales ratio in order to increase the effect on cash flow, which will attract more purchases of the stock. If the sales ratio deducts to 10%, the revenue remains the same, while other data like NOPAT, Operating Income and FCF all go up. The equity value ascends. Since the # shares outstanding are constant, which are 271.5, the equity value per share rises as well. If the sales ratio turns into
Formula: Also known as the Asset Turnover Ratio. The debt ratio compares a company's total debt to its total assets, which is used to gain a general idea as to the amount of leverage being used by a company. A low percentage means that the company is less dependent on leverage, i.e., money borrowed from and/or owed to others. The lower the percentage, the less leverage a company is using and the stronger its equity position. In general, the higher the ratio, the more risk that company is considered to have taken on.
If there is spare capacity (negative output gap), then demand side policies can play a role in increasing economic growth. For example if we decrease interest rates, we will increase the demand in the economy as people have more money as their mortgage costs are decreased. It is the same idea with lowering taxes - this will boost demand, as people have more money to spend as less is taken away from them by the government. Aggregate demand is made up of consumption (consumer spending, Investments Government spending and Exports (minus) imports (Net exports). If anything affects these factors will result in affecting the demand.
The volume is a constant which is assumed at 80% in the analysis of the price. On the other hand, informing the price-flex the price decreases would be the variablecosts, which can easily be reduced for the benefit of the company. In this worst and base case, ten percent decreases and this same percent remain for all the prices effectively. These are the main changes in both the methods of the pricing strategy. Furthermore, there is a need to increase the price by 6% to maintain the company’s original profit potential over the increase of cost.