All categories

3 years ago

PP.18 A "mix hedge"...(Check all that apply.)

Business

1 answer:

Oksi-84 [34.3K]3 years ago

3 0

Answer:

A mix hedge reduces levels of expensive FG inventory while slightly increasing component inventories.

A mix hedge is a planning technique which supports increased production flexibility

Explanation:

Hedging inventory implies a level of inventory that is kept to shield against unexpected event such as breakdown of machines,strikes,surge in demand for product or non-availability of raw materials due to disruption in supplier's business.

However, mix hedge is required to ensure the right of mix of inventories at every point in time so as to avoid investing more than required resources in inventory by keeping low volume of expensive items of inventory and at the same time increasing the number of inventories kept overall,such that risk associated with inventory can be shared by a number of items of inventory instead of a single line of inventory.

You might be interested in

Suppose a bank's balance sheet is as follows and banks are required to hold reserves equal to 20 percent of deposits: assets lia

Ganezh [65]

<span>Which of the following statements are true?
A) A bank's assets are its sources of funds.
B) A bank's liabilities are its uses of funds.
C) A bank's balance sheet shows that total assets equal total liabilities plus equity capital.
D) A bank's balance sheet indicates whether or not the bank is profitable.</span>

4 0

4 years ago

Least-Squares Regression [LO5-11] [The following information applies to the questions displayed below.] Bargain Rental Car offer

ycow [4]

Answer:

I used an excel spreadsheet to calculate this:

the least squares regression line:

y = a + bx

y = $2,752 + 3.87x

where y = total cash wash costs and x = rental returns

fixed costs = $2,752 per month

variable cost = $3.87 per car washed

Download pdf

5 0

3 years ago

The amount of the promissory note plus the interest earned on the due date is called the

yuradex [85]

Answer:

The amount of the promissory note plus the interest earned on the due date is called the maturity value.

Explanation:

Maturity value is the amount that has to be paid to an investor at the end of the debt's intrument period. The amount to be paid includes the interest earned during the period of the investment and the amount of money invested.

3 0

4 years ago

Regarding ABC costing systems, which of the following statements is true?ABC systems accumulate overhead costs by departmentsABC

Scrat [10]

Answer: ABC costing systems have separate indirect cost allocation rates for each activity

Explanation: this costing method is based on the costs that each activity consume in a company. It can be used in either manufacturing or services company. The way of distribution the indirect costs is quite accurate.

3 0

3 years ago

1. Peter's Audio Shop has a before-tax cost of debt of 7%, a cost of equity of 11%, and a cost of preferred stock of 8%. The fir

tia_tia [17]

Answer:

9.14%

Explanation:

The computation of the weighted average cost of capital is shown below:-

Debt = $500,000 × 1.02

= $0.51 m

Preferred = 40,000 × $34

= $1.36 m

Common = 104,000 × $20

= $2.08 m

Total = $0.51 m + $1.36 m + $2.08 m

= $3.95 m

So, Weighted average cost of capital = ($2.08 ÷ $3.95 m × 0.11) + ($1.36 m ÷ $3.95 m × 0.08) + (($0.51 m ÷ 3.95 m × 0.07 × (1 - 0.34))

= 0.057924 + 0.027544 + 0.005965

= 0.091433

or 9.14%

Therefore for computing the weighted average cost of capital we simply applied the above equation.

7 0

3 years ago