Answer:
E. rise significantly as defects increase in the finished product.
Explanation:
Real Cost of Quality
This cost is concerned with preventing, finding and correcting product issues relating to quality. It is the total amount used is solving quality related defects. It is the extent to which resources are used to prevent poor quality that are below the standards of the organization. The cost tend to rise whenever there's a rise in the defects found in finished products. This is because it is the cost that is used in correcting or remediating the defects.
Answer: D inventory conversion period
Explanation:
Inventory conversion period reports us about the average time to convert our total inventory into sales. It is relationship between total days in year and inventory turnover ratio. In other words, it measures the length of time on average between the acquisition and sale of merchandise.
Answer:
Comparative Advantage
Explanation:
The assumption of Comparative Advantage theory is that there is no barrier.
It is explained in the model that if each country focuses on what it does best relatively then both countries together can produce more of each good/service using all their labor.
Then they can trade with each other and benefit. (To trade they must produce what the other need)
Answer:
Calvin would have a long-term capital gain of $1000.
Explanation:
Calvin's contributions towards partnership is as below
Beg $43,000
2010 income $22,000
2011 income $25,000
2010 income $12,000
Total contribution $102,000
Total amount Calvin realized by selling his partnership interest = $103,000.
Therefore, Calvin would have a long-term capital gain of $1000 (amount Calvin realized - Calvin's contributions = $103,000 - $102,000).
Answer:
B. 100 shares of ABC preferred stock
Explanation:
Shares are ownership stakes of a company that are given out to individuals who contribute to capital base of a company.
Preference shares are those whose owners recieve preference in payment of dividends, a fixed dividend is paid to them.
Ordinary shares recieve less preference when dividend is paid, usually coming last in divedend payment.
In this scenario ABC has decided to pay 10% stock dividend. This will be paid to ordinary share holders.
So the person with 100 preference shares will have 100 preference shares
10% of par value of $100 is 0.1 * 100= $10
Number of shares are 100 so the value is now 100 * $10 = $1,000
Since the conversion rate of preference to ordinary shares is 10:1
Number of preference shares= 1,000 ÷ 10= 100 preference shares
