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Ludmilka [50]
3 years ago
7

Discuss the optimal method for procuring inputs that have well-defined and measurable quality specifications and require highly

specialized investments. What are the primary advantages and disadvantages of acquiring inputs through this means? Give an example not used in the textbook that uses this method of procurement.
Business
2 answers:
solmaris [256]3 years ago
6 0

Answer:

the optimal method for procuring inputs that have well-defined and measurable quality specifications and require highly specialized investments is <u>Contracting.</u>

Explanation:

Contracting requires writing an agreement that extends the relationship between a buyer and a seller

The key features of contracting includes

  • specialization
  • reduced opportunism
  • avoidance of skimping on specialized investment
  • expensive in complex environments

The primary advantage of using contracting is specialization and the main disadvantage is high cost.

U.S. Shell Oil Company is the United States which is among the largest oil companies in the world is a good example of a company that uses Contracting method for procuring inputs.

son4ous [18]3 years ago
3 0

Answer:

The optimal method for procuring inputs that have well-defined and measurable quality specifications and require highly specialized investments is the contract.

Explanation:

The contract is signed between the seller and the buyer, and establishes formal and legal terms, and agreed responsabilities. The primary advantages are that firms and buyers are allowed to focus in producing and getting what they need as contracts are used for tangible goods and for rendered services, reducing the opportunistic behaviour and underinvestment.

The CONASUPO, mexican government office, signed a contract with the mexican ranch owners to get all their milk production at low prices to feed the thousands of low income families.

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During which time period was the annual rate of increase of the speed the greatest? a) from year 1 to year 2 b) from year 1 to y
muminat

The annual rate will increase with the greatest speed from year 1 to year 3.

<h3>What is the growth rate?</h3>

A growth rate is the proportion that changes the price of all goods and services produced in a country over a specific time period in comparison to a previous period.

The growth rate is used to measure the comparative fitness of an economic system over time. The numbers are commonly compiled and announced quarterly and annually.

From 1948 to 2021, the GDP Annual Growth Rate in the United States averaged 3.14 percent, with an all-time high of 13.4 percent in the fourth sector of 1950.

From the above declaration, it's clear that choice C, year 1 to year 3, is the proper option.

Learn more about Growth rate, refer to:

brainly.com/question/13776641

4 0
2 years ago
For purposes of computing the WACC, if the book value of equity exceeds the market value of equity, then: the market value of eq
vagabundo [1.1K]

Answer:

The market value of equity should be used.

Explanation:

Their are only two methods which are book value method or market value method. The market value method is preferred because the reason is that the market value gives the more accurate numerical value that the securities of the company will give which is the required rate of return to its investors. However historic cost data is not useful because the value of stock and bonds keeps changing every second in the stock exchange and their is the risk that the WACC calculated is inaccurate which implies that the project appraised is also incorrect.

So the best way to calculate the weighted cost of capital is that we should use the fair value of the securities.

5 0
3 years ago
Read 2 more answers
Based on the segment income statement below, Chips, Inc. is considering eliminating its Barbecue Division line. Revenue from Bar
zloy xaker [14]

Answer: Decrease by $70000

Explanation:

Before the Barbecue Division is eliminated, the profit gotten will be:

Revenue from Barbecue Division sales = $510,000

Less: Salaries = $110000

Less: Direct material = $315000

Profit = $70000

Therefore, based on the analysis above, If Barbecue Division were eliminated, profitability would decrease by $70000

7 0
3 years ago
An information security analyst needs to work with an employee who can answer questions about how data for a specific system is
3241004551 [841]

Answer:

The correct answer would be, Owner. The analyst should seek out an employee who has the role of owner.

Explanation:

An information security analyst is a person who make the computer systems of a company Safe and Secure. Firewalls and Data Encryption programs are being installed by the information security analysts in order to safeguard the company's information. Also new security trends are  updated on regular basis and they keep the management informed about the security of the data and information. While developing the security program for the company, the best person who can answer the questions, about how data for a specific system is used in business and up to which extent the security is required for specific data and information, is the owner. The owner is the one who can tell the security analyst to do what he wants and requires.

3 0
3 years ago
Galvatron Metals has a bond outstanding with a coupon rate of 6.1 percent and semiannual payments. The bond currently sells for
Eva8 [605]

Answer:

After tax cost of debt is 4.16%

Explanation:

The yield on the debt which is pre-tax cost of debt can be computed using the rate formula in excel, which is given as follows:

=rate(nper,pmt,-pv,fv)

where nper is the number of coupon payments,this is calculated as 19*2 since it has a semi-annual coupon interest

pmt is the periodic coupon payment  6.1%/2*$2000=$61

pv is the current price of the bond which is $1933

fv is the face value repayable on redemption $2000

=rate(38,61,-1933,2000)

=3.20%

This is semi-annual yield , annual yield is 3.20%*2=6.40%

After tax cost of debt=6.40%*(1-t)

where t is the tax rate at 35%=0.35

after tax cost of debt=6.40%*(1-0.35)

                                  =4.16%

5 0
3 years ago
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