Howard, a resident of Illinois, owns a warehouse in Indiana. a dispute arises over the ownership of the warehouse with jack, a resident of Kentucky. jack files a suit against Howard in Indiana. regarding this suit, Indiana has "not likely to have jurisdiction over the case."
Indiana court has not likely to have jurisdiction over the case.
The term jurisdiction can be best understood by being compared to "power." Any court possesses jurisdiction over matters only to the extent granted to it by the Constitution, and/or legislation of the sovereignty on behalf of which it functions.
Territorial jurisdiction is the court's power to bind the parties to the action. This law determines the scope of federal and state court power. State court territorial jurisdiction is determined by the Due Process Clause of the Constitution's Fourteenth Amendment and the federal court territorial jurisdiction is determined by the Due Process Clause of the Constitution's Fifth Amendment.
All state courts have jurisdiction over the matters which take place within the boundary of that state.
The given question is incomplete, the complete question is
Howard, a resident of Illinois, owns a warehouse in Indiana. a dispute arises over the ownership of the warehouse with jack, a resident of Kentucky. jack files a suit against Howard in Indiana. regarding this suit, Indiana has
.a. likely to have jurisdiction over the case.
b. not likely to have jurisdiction over the case.
c. likely to refer the case to a higher district court.
d. likely to refer the case to an appellate court.
The correct option is b) among the given options.
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the first step in the problem-solving process is defining the problem. what is the next step? proposing solutions redefining the problem testing the solution researching the problem
Researching the problem is the next step, as the first step in the problem-solving process is defining the problem. Hence, option D is correct.
What is meant by problem-solving process?Prospecting, planning, approaching, presenting, addressing objections, closing, and following up are the seven processes that make up the selling process. Investigating the needs and desires of potential consumers takes up the first three stages of the selling process, with your presentation occurring halfway through.
For instance, a customer service scenario might ask, "How would you handle an irate customer?
Thus, option D is correct.
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Answer:
It’s c
Explanation: define the problem
Dupli-pro copy shop provides photocopying service. next year, dupli-pro estimates it will copy 2,800,000 pages at a price of $0.08 each in the coming year. product costs include:______.
Dupli-Pro Copy Shop provides photocopying service. Next year, Dupli-Pro estimates it will copy 2,800,000 pages at a price of $0.08 each in the coming year. Product costs include: Direct Materials, Direct Labor, Variable Overhead and Total Fixed Overhead.
How are additional product costs specified?
Product costs are often referred to as "inventory costs" or "manufacturing costs." Permanent costs: - Selling and administrative costs. These costs are reflected in the income statement as incurred.
Is the product costs advertised?
Sales commissions, administration fees, advertising and marketing, and office space rentals are all recurring fees. These charges are not covered as part of the cost of purchased or synthetic items, but are recognized as charges in the profit and loss account for the period in which they are incurred.
Is the rental the product costs?
When a manufacturer leases its manufacturing equipment and systems, the lease is the product costs (rather than the price of length). In other words, the rent is protected against the manufacturing overheads assigned to the manufactured product.
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the current price of blue jeans is $30 per pair, but the equilibrium price of blue jeans is $25 per pair. as a result, which of the following statements is not true?
The statement that is not true is there is a shortage of blue jeans at the $30 price.
What is a surplus?Equilibrium is the point where the quantity demanded equal quantity supplied. On a graph, it is where the demand curve crosses the supply curve.
The price at equilibrium is known as equilibrium price and the quantity at equilibrium is known as equilibrium quantity
If price is above the equilibrium price, quantity supplied exceeds quantity demanded and there is a surplus. If price is below the equilibrium price, quantity demanded exceeds quantity supplied and there is a shortage.
Since the current price of blue jeans is greater than the equilibrium price, there would be a surplus. Thus, quantity supplied would be greater than the quantity demanded.
Here are the options:
There is a surplus of blue jeans at the $30 price.
b. There is a shortage of blue jeans at the $30 price.
c. The quantity supplied of blue jeans exceeds the quantity demanded of blue jeans at the $30 price.
d. The equilibrium quantity of blue jeans exceeds the quantity demanded at the $30 price.
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A local store charges 1 1/2ach month on the unpaid balance for its charge account. what nominal annual interest rate is being charged? what is the effective interest rate?\
Effective Annual Rate = (1 + (nominal interest rate / number of compounding periods)) ^ (number of compounding periods) – 1
The interest rate that is actually earned on a loan or paid on an investment after interest has been compounded over a specified amount of time is known as the Effective Annual Rate (EAR). It is typically higher than the nominal rate and is used to contrast various financial products that compute annual interest over various compounding intervals, such as weekly, monthly, and yearly. As more compounding periods are added, the effective yearly interest rate rises over time. The rate of interest that is actually generated on an investment or paid on a loan as a result of compounding interest over a specified amount of time is known as the Effective Annual Rate (EAR).
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Project manager has discovered a team member has gold plated the work done in an activity. in order to discover this, the project manager must have been performing:_____.
A project manager has discovered a team member has gold plated the work done in an activity. in order to discover this, the project manager must have been performing key deliverables.
Something which is created as a result of a certain procedure is known as a significant deliverable. These deliverables can be the finished goods or they can be the final products of a project, or the organization may complete them in smaller and more frequent deliverables during the course of the project.
The stakeholder or the client is typically given a deadline for receiving the key deliverables, and the project is not considered s finished until the stakeholder has viewed and approved the final deliverable.
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If+sales+are+$810,000,+variable+costs+are+76%+of+sales,+and+operating+income+is+$257,000,+what+is+the+contribution+margin+ratio?
Contribution margin ratio is 24%
Contribution margin ratio = 100% - Variable expense%
=100%-76%
=24%
Contribution Margin:
You can provide the contribution margin as a gross or per-unit figure. After removing the variable element of the company's expenditures, it indicates the additional revenue made for each product or unit sold.
By subtracting the variable cost per unit from the selling price per unit, the contribution margin is calculated. The metric, which is often referred to as dollar contribution per unit, shows how much a certain product adds to the company's overall profit.
It offers a means of illustrating the profit potential of a certain item or service a business offers, as well as the percentage of revenue that goes toward paying the business' fixed expenses. Profit is defined as whatever income that remains after paying fixed costs.
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which claim will this company most likely make? aluminum pans are the most energy-efficient cookware. copper pans are the most energy-efficient cookware, but they cost the most. iron pans require less energy to heat up than copper frying pans, but they cost less. copper pans require the most energy to heat up.
In this question the company make claim that iron pans require less energy to heat up that copper frying pans and less cost.
In this question, the meaning of the claim means the feature of the product that a company claim to represent its product. In this, four claim are given from which we have to select the correct option. The company claim feature of the iron pan because the iron pans use less energy as compared to the other pans on the other hand the cost of the iron pans is also low. Hence, the company choose third claim.The company does not choose first claim because it is less beneficial.The company does not choose second claim because it is less beneficial.The company does not choose fourth claim because it is less beneficial.Learn more about claim here-
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derek is having postcards printed to advertise his services as an arizona real estate broker. he’ll use his name, derek dibbley, on the card. what else do arizona real estate advertising rules require him to include?
In addition to being a licensed real estate agent, a real estate broker is also a licensed real estate professional in their own right.
A real estate broker has knowledge that can be useful to people in real estate transactions, and just as an agent, a broker can aid with the sale or purchase of real estate. A broker's responsibility is to guarantee that real estate transactions are legal, that all paperwork is accurate and complete, and that any funds, such as those in escrow accounts, are documented and reported legally. This is a key distinction between a broker and an agent.
Every real estate agent is employed by a broker. Therefore, picture a broker (or brokerage company) as the general term for particular real estate agents, such as those you would hire to sell your house or assist you in buying a property. A broker makes sure all transactions are compliant with the law while a real estate agent manages clients, listings, and sales.
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Which competitive force has naomi capitalized on to benefit her company's manufacturing processes?
The annual budgeting process, where everything is reduced to a financial issue, is where most businesses can trace the beginnings of a systematic planning system.
Procedures are developed to estimate income, costs, and capital requirements as well as to establish annual budget expense ceilings. Information systems track functional performance in relation to financial goals.
Phase I companies frequently exhibit effective business strategies, although they are rarely institutionalized. They actually do exist. A projected earnings growth rate, occasionally qualified by specific debt/equity targets or other clear financial objectives, may be the only tangible sign that a corporate strategy is in place. The CEO and the top staff play a major role in the Phase I strategy's quality. Do they truly understand the markets and goods that their business serves.
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Benjamin, age 16, is claimed as a dependent by his parents. during 2021, he earned $850 at a car wash. benjamin's standard deduction is $1,450 ($1,100 $350). true false
False, Benjamin, 16, is being claimed as a dependent by his parents. He made $850 at a car wash in 2021. It is false that Benjamin's standard deduction is $1,450 ($1,100 multiplied by 350).
Car Wash
A car wash, also referred to as an auto wash, is a facility where exteriors and, on occasion, interiors of automobiles are washed. Car washes come in three varieties: fully automated, full-service (where a staff member washes the car), and self-service (possibly connected to a gas station). In order to earn money for a deserving cause, car washes can also be events when customers pay to have their vehicles washed by volunteers using less sophisticated equipment.
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Alma corp. issues 1,000 shares of $10 par common stock at $14 per share. when the transaction is recorded, credits are made to?
Alma corp. issues 1,000 shares of $10 par common stock at $14 per share. The transaction is recorded, credits are made to Common Stock, $10,000, and Paid-In Capital in Excess of Par, $4,000
What is a stock?Security known as a stock denotes a portion of ownership in a business. A share, or a small portion of a firm, is what you buy when you buy its stock. Stocks in corporations are bought by investors who anticipate an increase in value. In that case, the stock price of the company rises as well. A profit can then be made when the stock is sold.
As a result of your participation in the company's profits, you are referred to as a shareholder when you possess stock in it.
A stock market exchange, such as the Nasdaq or the New York Stock Exchange, is how publicly traded corporations sell their stock. According to the SEC, issuing stock can be a way for businesses to generate capital to settle debt, introduce new goods, or expand their operations. (Read more about the fundamentals of the stock market here.)
Stock investment is a technique for investors to grow their money over time and outpace inflation. As a shareholder, you have the potential to profit from rising stock prices, receive dividend payments when the firm distributes its profits, and in some cases, participate in shareholder elections.
Thus, stocks refer to the ownership proportion of the company.
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right medical introduced a new implant that carries a 5- year warranty against manufacturer's defects. based on industry experience with similar products, warranty costs are expected to approximate 1% of sales. sales were $15 million and actual warranty expenditures were $20,000 in the first year of selling the product.
There is a loss contingency and the estimated warranty liability is credited and warranty expense is debited in the period in which the products under warranty are sold. The right will report a liability of $388,250
Warranty Liability, Beg. Balance = $ 420,000
Warranty Expense = $21,000,000*2%
Actual Expenditure = $ 31,750
End Balance = $ 388,250
Hence, this is a loss contingency and the estimated warranty liability is credited and warranty expense is debited in the period in which the products under warranty are sold. The right will report a liability of $388,250
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a business profile is a specific set of transactions events and ersults that can be descrivbed and documented
A business profile is a specific set of transactions, events, and results that can be described and documented. This statement is FALSE.
What is Business Profile?
A business profile is a summary of all the important aspects of a company. It is an overview that conveys crucial details about the subject. A statement that lists a company's key characteristics is called a business profile. The majority of these profiles are created to serve as promotional material for various objectives. Typically, these profiles are created for possible investors, government regulators, significant stakeholders, or even significant future clients or suppliers. Additionally, financial institutions frequently receive this information. Businesses utilize business profiles to spread the word about their brand, which may help them establish business alliances, hire new staff members, and sell more goods and services.
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Which basic principle of individual choice does ginny's plan illustrate that her husband's advice does not?
Ginny's plan illustrates that many decisions are made on the margin.
What does an opportunity cost?Giving something up in order to obtain something is known as an opportunity cost. Sessions in the Reason Pool appear to have more of an effect on Ginny. So it makes logical to give swimming a bit extra time. She won't necessarily spend all of her time swimming, though. The marginal value of bike training will be greater than the worth of the final hour of pool training if she merely swims, as her husband advises. There is no all-or-nothing choice here. The margin is where decisions are made.
1. People have to make trade-offs.
2. The price of something is what
3. Rational individuals think at the margin you have to give up to get it
4. Individuals react to incentives
5. Trade can benefit everyone.
6. Markets are typically an effective approach to structuring economic activities
7. Sometimes governments can enhance market outcomes
8. A nation's capacity for producing products and services determines its standard of living.
9. Prices increase when the government prints too much money, and society must choose between inflation and unemployment in the short term.
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Who is responsible for ensuring the proper construction and load-in of the scenery and properties as well as managing budgets?
The answer is Technical Director
In a software corporation, engineering firm, film studio, theater company, or television studio, for example, a technical director (TD) is typically a senior technical person. In a certain technical subject, this person typically possesses the highest level of ability.
In software development, a technical director is typically in charge of managing technical risks and opportunities, key software design and implementation decisions made in collaboration with the development teams, task scheduling that includes tracking dependencies, managing change requests, ensuring the quality of deliveries, and educating the team on technical best practices.
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Ron landscaping's income statement reports net income of $75,300, which includes deductions for interest expense of $11,500 and income taxes of $30,500. its times interest earned is:___.
Ron landscaping's earnings statement reviews internet earnings of $75, three hundred, which includes deductions for interest price of $11,500 and earnings taxes of $30,500. its times interest expense is: = internet profits + income Taxes + hobby rate; profits before interest and taxes = $75,three hundred + $30,500 + $eleven,500; A) 10.6 times.
An expense is an object requiring an outflow of cash, or any form of fortune in well-known, to some other character or group as a charge for an item, service, or different category of fees. For a tenant, hire is a rate. for college students or mothers and fathers, a lesson is a fee.
An expense is the cost of operations that a company incurs to generate sales. because the famous announcement goes, “it expenses cash to make cash.” common expenses consist of bills to providers, worker wages, factory rentals, and equipment depreciation.If something is done at the cost of someone or something, it is done in a way that harms someone or something. here are some instances sentences in the use of the word: malls flourished at the rate of small stores downtown. He argues that the tax reduction will gain the rich on the fee of the bad.
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A borrower applied for a va guaranteed first time mortgage for $150,000. however, the property appraised for $146,000. if the buyer still wished to buy the property, what most probably will happen?
A borrower applied for a VA guaranteed first time mortgage for $150,000. However, the property appraised for $146,000. If the buyer still wished to buy the property, The VA could allow the borrower to make up the difference in cash.
What is the meaning of mortgage?
A mortgage is an agreement among you and a lender that offers the lender the right to take your own home in case you fail to pay off the cash you've borrowed plus hobby. Mortgage loans are used to buy a home or to borrow cash against the value of a domestic you already personal. Seven matters to search for in a mortgage.
What's the distinction among mortgage and loan?
A loan is the sum of money borrowed from a monetary institution to meet various dreams or requirements. it can be collateral-free or secured. Mortgage refers to an immovable property that is used as collateral to avail a loan.
Why do people go for mortgage?
A mortgage is a need in case you can't pay the whole value of a home out of pocket. There are some instances in which it makes experience to have a mortgage on your own home even though you have the money to pay it off. For example, buyers on occasion loan residences to loose up price range for other investments.
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for each of the following situations that occurred in june, with regard to common stock and dividends of a corporation, compute the amount of net income or net loss during june . (use a minus sign or parentheses for a net loss.) a. the company issued of common stock and paid no dividends.
The net amount that the company has issued of common stock and paid no dividends is $110,000 in Issued capital.
What is Common stock?
A form of corporate equity ownership and a kind of security is common stock. Outside of the United States, the words voting share and ordinary share are widely used. In the UK and other Commonwealth nations, they are referred to as equity shares or ordinary shares. A security that symbolises ownership in a firm is called common stock. Common stock owners choose the board of directors and cast ballots for corporate rules. Long-term rates of return are often higher with this type of stock ownership. The distinctions between preferred and ordinary stock are numerous. The fundamental distinction is that stockholders of ordinary stock typically receive one vote per share owned, whereas preferred stock typically does not.
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With a 0.04 percent chance of a stockout, what is the z-value to use in calculating safety stock?
Z is the preferred service level, it is the usual deviation of lead time, and D avg is the demand common. do not be intimidated. The best technique for calculating safety inventory only calls for a four-step procedure to calculate these variables.
Solution:
Stock out level=4%
In-stock Probability=100-4=96%
Therefore Z value at 96% service level=1.751
Resulting Z -a value of 1.751.
A stockout situation. With a lower score approach, you may have higher possibilities of running out of inventory. as an example, in case you pick out a Z rating of 2.33, there's a ninety-nine percent threat that you might not face a stockout situation. assume an agency has a team to investigate the market call, and it has been estimated that the call for an umbrella is almost 1000 devices each month. As a precaution, the organization can determine to have a hundred units as protection stock because the call for is in no way constant.
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Suppose tickets to a baseball game are currently selling for $60 each, but the equilibrium price of tickets is $50 each. We would expect a.
We would expect a... surplus to exist and the market price of tickets to decrease.
An asset or resource that has more than is actively being used is said to have a surplus. A surplus can refer to a wide range of things, including money, goods, capital, and profits. A surplus in the context of inventories refers to items that are still on store shelves but have not yet been purchased. When you have more of something than you need or intend to use, you have a surplus. When you prepare a meal, for instance, you have a surplus of food if there is any left over after everyone has finished eating. Cash that is in excess of what is needed for ongoing operations is referred to as a cash surplus. Just as crucial as managing the flow of money into and out of your cash flow cycle is how you manage your cash surplus.
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on january 1, year 1, weller company issued bonds with a $400,000 face value, a stated rate of interest of 10%, and a 10-year term to maturity. weller uses the effective interest method to amortize bond discounts and premiums. the market rate of interest on the date of issuance was 8%. interest is paid annually on december 31. assuming weller issued the bond for $431,940, what is the amount of interest expense that will be recognized during year 3? a. $33,649 b. $20,000 c. $34,120 d. $46,350
The amount of interest expense that will be recognized during Year 3 is $34,058.
For year 1,
Cash paid = $400,000 x 10%
Cash paid = $40,000
Interest expense = $431,940 x 8%
Interest expense = $34,555
Premium amortization = $40,000 - $34,555
Premium amortization = $5,445
For year 2,
Cash paid = $40,000
Interest expense = $426,495 x 8%
Interest expense = $34,120
Premium amortization = $40,000 - $34,120
Premium amortization = $5,880
For year 3,
Cash paid = $40,000
Interest expense = $426,060 x 8%
Interest expense = $34,085
Therefore, The amount of interest expense that will be recognized during Year 3 is $34,085.
The expense of interest is related to the price of borrowing money. It is the fee that a lender assesses to a borrower in exchange for using their funds. Interest expense can be the cost of borrowing money from banks, bondholders, and other sources on the income statement. the amount of loan interest paid, and It is listed as a non-current liability on the liabilities section of the company's balance sheet. The simplest way to distinguish between interest and profit is to understand that they are two distinct concepts: profit is simply income fewer costs and expenses, regardless of whether the entity is a bank or another business. Interest is a type of income common to banks.
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cree markets led (light-emitting diode) bulbs, selling them for a profit. a cree led bulb replaces the traditional incandescent bulb, consuming 85 percent less energy and lasting for 25,000 hours. cree is an example of
Cree is an example of a Business firm. Therefore option d) Business Firms is correct.
What is an incandescent bulb?In essence, an incandescent light bulb is a display of a controlled fire. Electricity enters the bulb through the base and heats the tungsten filament within when an electrical current comes into touch with it. And as the filament gets hotter, heat-generated light called "incandescence" is produced. (A burning wood or coal would have the same effect.)
An incandescent light bulb's light is essentially just that phenomenon taking place in a safe, controlled setting. Particles shoot off the filament as it keeps burning. The light bulb eventually burns out when there are no more particles to burn, which normally happens between 800 and 1,200 hours during the incandescent light bulb's lifespan.
However, since incandescence is fire, it creates more than just light, which is the problem with incandescent lights. Moreover, heat is produced. As a result, the heat generated by an incandescent bulb is wasteful by nature unless you're looking for a "heat lamp."
As a matter of fact, incandescent light bulbs only emit 10% light and 90% heat. You've probably felt the 90/10 heat-to-light ratio if you've ever handled an incandescent bulb that is lighted. They are warm bulbs!
Thus, these bulbs consumed a tremendous amount of energy as compared to modern LEDs.
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Complete Question:
Cree markets LED (light-emitting diode) bulbs that replace the traditional incandescent bulb. A CreeLED bulb consumes 85 percent less energy and lasts for 25,000 hours. Cree is an example of
a. a cooperative.
b. an industry.
c. a nonprofit organization.
d. a business firm.
e. a government agency.
The daily report performed by the night auditor contains key operating ratios used by management including?
The daily report performed by the night auditor should contain Room occupancy percentage
You may be wondering what a night auditor does if you are unfamiliar with the position. The two major duties of a night auditor are to ensure that visitors have a wonderful experience during the evening hours and to reconcile the financial reports from the previous day's operations. So, an evening auditor is a career in accounting? Partially, yeah. Even while front office departments often oversee night auditors, end-of-day financial reporting and reconciliation are among their primary tasks. Evening auditing work may be rewarding and engaging. The work is challenging in many ways, such as handling urgent situations late at night or handling complex visitor requirements.
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are clear and accurate written statements that identify the basic rules and principles (the what and why) used to control and expedite decision making. describe the process by which something is done (the how).
Policies are clear and accurate written statements that identify the basic rules and principles (the what and why) used to control and expedite decision-making. This is further explained below.
What are policies?Generally, A policy may be defined as an intentional set of principles that are used to direct decision-making and produce sensible results. A policy is a declaration of purpose, and the manner in which it is carried out might be either a process or a protocol.
In conclusion, Within any organization, there exists at least one governing body responsible for formulating and enacting policies.
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Western scholars and policymakers are likely to argue that _______ and not power have been the prevailing force shaping international relations during recent decades
There is virtually no part of the world that is now not part of the global economy.
The world economy or global economy is the economy of all humans of the world, pertaining to the global economic system, which incorporates all economic activities which are conducted both within and between nations, including production, consumption, economic management, add general, exchange of monetary values and trade of goods and services.In some contexts, the 2 terms are distinct "international" or "global economy" being measured separately and distinguished from national economies, while the "world economy" is just an aggregate of the separate countries' measurements. Beyond the minimum standard concerning value in production, use and exchange, the definitions, representations, models and valuations of the planet global economy vary widely. it's inseparable from the geography and ecology of planet Earth.
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Craigmont company's direct materials costs are $3,600,000, its direct labor costs total $7,540,000, and its factory overhead costs total $5,540,000. its conversion costs total:_____.
The conversion cost of Craigmont company is $13,080,000
How to calculate the conversation costs ?Conversion cost can be described as the sum of the cost of direct labor cost and overhead cost.
The cost of direct materials is $3,600,000
The direct labor costs is $7,540,000
The overhead cost is $5,540,000
Conversation cost= cost of direct labor + overhead cost
= 7,540,000 + 5,540,000
= 13,080,000
Hence the conversion cost is $13,080,000
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pam needs to borrow money to buy a home. suppose that the saving rate in the country is expected to decrease. assuming nothing else changes, this means that if pam borrows now, her cost of borrowing money is expected to due to the following factor:
Pam's cost of borrowing money is expected to increase preferences for current consumption due to the federal deficit decreases, the federal reserve sells treasury securities to banks etc.
What is the meaning of cost of borrowing money?Cost of borrowing money refers to the price that people pay to borrow money. It is also known as Interest. When people make the payments for the loan, interest is a part of the payment.
The cost of borrowing money basically expressed as a percentage of the amount borrowed that is called principal amount. Generally, low-risk borrowers with good credit scores has to pay the lowest interest rates.
Basically, cost of borrowing money is the interest rate that a borrower has to pay on the money borrowed.
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When managers see things only through their own perspective, their focus is called __________.
When managers see things only through their own perspective, their focus is called assertiveness parochialism.
Assertiveness parochialism is the term used to describe a manager's emphasis when they only see things from their own perspective.
Flooding and Parochial Reorganization on the German North Sea Coast in the Seventeenth Century: Community Assertiveness and the Value of Pastoral Care.
This article explores the specifics of parochial restructuring in the seventeenth century using the example of dramatic terrain changes brought on by floods on the German North Sea coast. It covers a wide range of recently discovered information from Schleswig-Holstein archives. The discussion of these significant issues that come with such a restructuring of the religious landscape owing to flood catastrophe is supported by a number of well-documented case studies from the region.
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tonya's budget constraint for gasoline (g) and clothes (c) each month can be expressed with the following equation: g
Each month is represented by G = 100 - 2C.
A budget constraint in economics refers to all the combinations of goods and services that a consumer can buy given current pricing and his or her allocated income. Consumer theory examines the dimensions of consumer choices using the notions of a financial constraint and a preference map as tools.A budget constraint occurs when a consumer's consumption patterns are restricted by a fixed income. When analyzing the demand schedule, we frequently consider effective demand. Effective demand is what consumers can actually spend given their income constraints.Assume the cost of beer is $2 and the cost of pizza is $3. Then suppose the consumer has $18 to spend. The price of a beer is written as 2B, where B indicates the number of beers consumed. Furthermore, the cost of pizza can be represented as 3P, where P represents the quantity of pizza consumed.Thus this is the meaning of Budget Constraint.
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if price of a good rises, what happens to quantity demanded for that good? a.it does not change. b.it decreases. c.the answer depends upon the supply of the good. d.it increases.
The correct option is (B) decreases.
How does change in the price of good affects the quantity demand?One of the earliest theories in economics is the law of demand. It combines with the law of supply to explain how market economies distribute resources and establish the costs of the goods and services we use on a daily basis. The quantity bought varies inversely with price, according to the rule of demand. To put it another way, demand decreases as price increases. Marginal utility is what causes this to happen. In other words, customers utilize the initial units of an economic good they buy to fulfill their most pressing demands first, and then they use every additional unit to fulfill progressively lower-value goals.
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