Answer:
Minimum transfer price when operating at capacity is the marginal cost + opportunity cost
Maximum transfer price is marginal cost only, when not operating at capacity.
Explanation:
Minimum transfer price when operating at capacity is the marginal cost + opportunity cost because when operating at capacity there are 2 elements involved - the cost at which it has made the units it will be transferring to another department within the organisation, and the profit it would have made if it had sold those units to others (opportunity cost)
Maximum transfer price is marginal cost only, when not operating at capacity because the department is constrained, it can only produce for the satisfaction of internal demand, not external customers; hence there is no case of opportunity costs.
Encouraging private ownership, protecting and encouraging competition, enforcing contracts, and keeping business cost low.
Answer: Logistics
Explanation: Logistics refers to the group of complex operation that are to be performed within an organisation by different individuals under the guidance of various different experts of such tasks. These operations are dependent on each other for their effective performance.
Thus, we can conclude that the combination of Rinker's manufacturing, distribution and purchasing activities will collectively be called as logistics.
Answer:
8.15 %
Explanation:
Weighted Average Cost of Capital (WACC) is the business Cost of permanent sources of finance pooled together. It shows the risk of the business and is used to evaluate projects.
WACC = Cost of Equity x Weight of Equity + Cost of Preferred Stock x Weight of Preferred Stock + Cost of Debt x Weight of Debt
<u>Remember to use the After tax cost of debt :</u>
After tax cost of debt = Interest x ( 1 - tax rate)
= 6.50% x (1 - 0.40)
= 3.90 %
therefore,
WACC = 11.25% x 55% + 6.00% x 10% + 3.90 % x 35%
= 8.15 %
Thus,
Quigley's WACC is closest to 8.15 %.
A matrix structure is an organizational structure that assigns specialists from different functional departments to work on one or more projects.
<h3>
What is a matrix?</h3>
- Teams in a matrix organization report to several leaders inside the business.
- The matrix structure promotes open communication between teams and can assist businesses in producing more creative goods and services.
<h3>What is an organizational structure?</h3>
- An organizational structure outlines how tasks are assigned, coordinated, and overseen in order to achieve organizational objectives.
- The basis upon which standard operating procedures and routines are built is provided by organizational structure.
- It decides who gets to take part in what decision-making procedures and how much their opinions influence the organization's activities.
- The lens or perspective that people use to perceive their organization and its surroundings is known as the organizational structure.
Therefore, a matrix structure is an organizational structure that assigns specialists from different functional departments to work on one or more projects.
Know more about organizational activities here:
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