Drastically reducing inventories to help manufacturers increase the utilization of more floor space is an example of <u>B. a just-in-time (JIT) inventory system</u>.
<h3>What is a Just-inTime inventory system?</h3>
A Just-in-Time inventory system is inventory management that ensures that raw materials for production arrive as needed.
With a Just-in-Time system, inventory arrives as production is scheduled to begin.
The purpose of a Just-in-Time system is to reduce inventory on hand to the minimum just to meet demand.
A. a merchandising inventory system.
B. a just-in-time (JIT) inventory system.
C. a finished goods inventory system.
D. determining inventory quantities.
Thus, reducing inventories to help manufacturers increase the utilization of more floor space is an example of <u>B. a just-in-time (JIT) inventory system</u>.
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Answer:
$1,350
Explanation:
Goodwill is the Excess of Cash Consideration over the Net Assets taken over. Net Assets taken over are measured at their Fair Market Value instead of Book Values at the Acquisition date.
Where,
Cash Consideration = $8,000
Fair Value of Net Assets Acquired ($6,000 + ) = $6,650
Therefore,
Goodwill = $8,000 - $6,650
= $1,350
Answer:
The answer is A) Puts emphasis on the external environment, which plays a role in determining a company´s ability to achieve above-average returns.
Explanation:
The I/O Model of Above-Average Returns basically assumes that the industry in which a company decides to compete in has a much larger influence on performance (earnings and profit) than the choices the managers of this company make.
The basic assumptions of this organization model are:
- The external environment imposes pressures and constraints that determine the strategies of the company and will result in above average returns.
- It assumes competing companies control similar strategically relevant resources and pursue similar strategies.
- Resources are highly mobile across companies, so that any differences that might develop between companies will be short-lived.
- Decision-makers within the company are assumed to be rational and committed to acting in the company´s profit-maximizing behaviors.
Answer: $1.4 million
Explanation: As, in the given case we need to compute the depreciation tax shield, we will use marginal corporate tax rate instead of average corporate tax rate as it will result in additional savings to the company in the form of taxes it paid.
Thus, shield amount can be computed as follows :-
($4,000,000) * (35%) = $1,400,000