From this analysis, and based on the different figures given by the standard unit procedure and activity based costing, we can conclude that Destin Brass co. is undervaluing flow controllers and can in fact afford to raise the price. This may explain why past price increases have not negatively affected demand. I recommend that the company adopt an activity-based costing strategy which will allow for the price of flow controllers to be increased and that of pumps to be decreased whilst still maintaining the desired 35% gross margin. This
Close substitutes B. Diseconomies of scale Correct C. Government licensing D. Price-taking behavior Answer Key: C Question 3 of 19 5.0 Points Other things equal, which reduces competition in an industry? A. Patent laws Correct B. Freedom of entry for new firms C. An increase in the number of producers D. An increase in the number of buyers Answer Key: A Question 4 of 19 5.0 Points The representative firm in a purely competitive industry: A. Will always earn a profit in the short run B.
MID TERM Question 1 of 19 5.0 Points Economics is the study of: A. increasing the level of productive resources so there is maximum output in society. B. increasing the level of productive resources so there is a minimum level of income. C. how people, institutions, and society make choices under conditions of scarcity. D. the efficient use of scarce resources paid for at the minimum level of cost to consumers and businesses. Answer Key: C Question 2 of 19 5.0 Points Which of the following is not a central focus of the "economic perspective"?
d) minimize operational costs and maximize firm efficiency. e) maintain steady growth in both sales and net earnings. 4. Accounting concepts for a firm to create value it must: a) have a greater cash inflow from its stockholders than its outflow to them. b) create more cash flow than it uses.
The higher the employees self-esteem the more profit is made which makes the employees more motivated. 3. Are there other possible explanations for the data in Figure 1 that would not necessarily support the idea that employees’ self-esteem affects companies’ profits? If so, explain what they are. Provide three alternative explanations.
However, this can also have a negative effect, because as cost increase so must the price to maintain the same profit margin. In demand based pricing, a manufacturer estimates the maximum price they believe a customer is willing to pay. Then thy subtract a mark up to provide for the selling expense and profit. From that number they determine the maximum amount they can spend to produce the product. In demand based pricing, the more people want a product, the more that product will cost.
| | Fairness | | | Compliance | | | Efficiency | The degree to which pay influences individual and aggregate motivation among the employees at any point in time is referred to as: | | sorting effect. | | | incentive effect. | | | motivational effect. | | | directional effect. | _____ would be most concerned about executive pay.
What is more, a company may choose to pay dividend as the consideration for their investment, because high dividend payout is important for investors as dividends provide certainty about the company's financial well-being. Dividends are also attractive for investors looking to secure current income. In addition, some analysts indicate that how the decrease and increase of a dividend distributions from Champion can affect the price of its security. Companies like Champion that have a long-standing history of stable dividend payouts would be negatively affected by lowering or omitting dividend distributions. So it would be positively affected by increasing dividend payouts or making additional payouts of the same dividends.
The cost of making a wrong decision is high and testing may be a particularly worthwhile venture to prevent these decisions. A wrong decision in the hiring process can lead to increased training costs, costs because of poor performance or errors and the costs of replacement of the employee. In the employee turnover process alone the cost saving can be realized with the reported average turnover cost of one third to one half of a non-management employee salary. This number increases to one to two
Low income tax payments are why one-third of U.S. companies use LIFO (Harrison, Horgren, & Thomas, 2010). LIFO also gives the company the most realistic net income figure because the recent costs of inventory are expensed. FIFO would use the oldest costs of inventory which is not a realistic measure of the inventory expense. The ending inventory under LIFO would be lower, due to the highest prices being expensed. If the company wants to lower its income at the end of the accounting period, they would buy more inventory and the cost of that inventory could be used for cost of goods sold.