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3 years ago

The main shortage cost when a producer does not have a requested item in inventory is

Business

1 answer:

Kryger [21]3 years ago

5 0

Answer:

D. The cost from the loss of customer goodwill.

Explanation:

The main shortage costs are the loss of customers that would now go and shop elsewhere. These costs are crucial as once the goodwill is lost it is unlikely the customers would return due to not having being catered the first time. Business want to attract new customers but most importantly they want to retain customers.

This type of shortage cost can be objectified further in marketing costs that were spent to get the customer at the store front in the first place which have been in vain.

All other options are restocking costs that are to be incurred regardless in lead times.

Hope that helps.

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A variant of fiscal-year budgeting whereby a 12-month projection into the future is maintained at all times is termed _____ budg

katrin [286]

A variant of fiscal-year budgeting whereby a 12-month projection into the future is maintained at all times is termed Continuous budgeting.

<h3>What is Continuous Budgeting?</h3>

Budgets are created for future periods, revised throughout current periods, and adjusted at the conclusion of the term. This process is known as continuous budgeting.
In other words, it's the practice of maintaining active, current, and future budgets to monitor costs and project growth in the future.
The majority of businesses create their budgets on a monthly, quarterly, or annual basis, however many businesses now create weekly budgets to monitor sales and shipments.
In the current era, these plans are utilized to establish financial and performance goals and benchmarks for the future.
Following the conclusion of the current period, the budgeting process is restarted by developing a new plan for the following accounting period.

To learn more about Continuous Budgeting refer to:

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6 0

2 years ago

The journal entry a company records for the issuance of bonds when the contract rate is greater than the market rate would be

ahrayia [7]

Answer:

C. debit cash, credit premium on bonds payable and bonds payable

Explanation:

Since the contract rate is greater than the market rate, the bond is issued at a premium. And, the journal entry is shown below:

Cash A/c Dr XXXXX

To Premium on bonds payable A/c XXXXX

To Bonds payable A/c XXXXX

(Being bond is issued at a premium is recorded)

When the bond is issued at a premium, we debited the cash account and credited the premium on bonds payable and bonds payable account

4 0

3 years ago

Which of these factors would strengthen demand for a nation’s currency on the international market? Select all that apply.

-BARSIC- [3]

Answer:

B C D F

Explanation:

3 0

3 years ago

Read 2 more answers

Zenith Investment Company is considering the purchase of an office property. It has done an extensive market analysis and has es

ValentinkaMS [17]

Based on the NOIs from Year 1 to 8, the value of the property today to Zenith Investment Company will be $13,221,383.94.

<h3>What is the value of the investment today?</h3>

Because the investment will be sold in 7 years, we need to find the terminal value from year 8 and above considering the indefinite growth rate of 3%.

Terminal value:

= Year 8 cashflow / (Return rate - Growth rate)

= 1,459,170 / (12% - 3%)

= $16,213,000

This amount should be added to the Year 7 cashflow to get:

= 16,213,000 + 1,419,000

= $17,632,000

The value today can be found by taking all the cashflows to their present value and summing them:

= 1,240,000/ 1.12 + 1,240,000 / 1.12² + 1,240,000 / 1.12³ + 1,280,000 / 1.12⁴ + 1,330,000 / 1.12⁵ + 1,380,000/ 1.12⁶ + 17,632,000⁷

= $13,221,383.94

Find out more on present value at brainly.com/question/17199492.

7 0

2 years ago

The Typhoon Resort, which has 100 rooms, has currently been experiencing an occupancy dip to a 60.00% level. The current rack ra

BlackZzzverrR [31]

Answer:

the current total contribution margin = 100 x 60% x ($80 - $20) = $3,600 per day

scenario 1: $10 discount

$3,600 = 100 x ?% x ($70 - $20)

$3,600 = $5,000 x ?%

$3,600 / $5,000 = ?%

occupancy rate = 72%

scenario 2: 10% discount

$3,600 = 100 x ?% x ($72 - $20)

$3,600 = $5,200 x ?%

$3,600 / $5,200 = ?%

occupancy rate = 69.23%

5 0

3 years ago