The statement,"A disadvantage of vertical integration is that by pooling demand for parts from a number of companies, a supplier may be able to enjoy economies of scale that result in higher quality and lower cost than if every company makes its own parts" is True
.
<u>Explanation:
</u>
The drawback to vertical integration is that a producer can have economies of scale, and incorporate demand for components from certain companies and therefore improve quality and cost in contrast with the production of their own products by each company.
Market power is a framework in which an organization manages the microeconomics and administration supply chain. In general, a supply chain leader creates another goods or services and the products satisfy a certain criteria.
A retailer such as Wal-Mart, which has its own products, is an example of vertical integration. This owns the inventory, manages the distribution and is the seller. Because it splits the guy in between, the company will deliver a much lower price, such as the brand name drug.
Answer: True
Explanation: The matching principle is used to compute capitalized costs by companies and it records expenses in the same period as the related revenues by matching the cost of an asset to the time periods in which it is used, and is therefore generating revenue.
Capitalized cost is also given as the present worth of cash flows which go on for an infinite period of time. In other words, the worth of cash flows does not leave the company when items are purchased. This is because the monetary value is retained in the form of a fixed or intangible asset.
The capitalized cost of any investment can be determined using the equation, P = A/i. Where P is the capitalized cost, A is the annual amount and i is the interest rate.
Answer:
D.
Municipal bond because the equivalent taxable yield is 6.6%
Explanation:
we should make the important difference that municipal bonds are tax free while corporate bonds don't.
Therefore we should solve for the after tax rate fo the corporate bond:
The corporate bond as a yield of 4.5% after taxes which is lower than the municipal bond. This make it more attractive
We can also solve for the pre-tax rate of the municipal bond:
the municipal bonds would be equivalent to a 6.6% corporate bonds.
This makes option D correct.
Answer:
a. $12,332.2 billion
b. $3218.9 billion
c. $3093.5 billion
d. $18120.5 billion
Explanation:
a. The value of Consumption Expenditure = Sum of consumption expenditure on all goods and services
= $1,367.1 billion + $2,666 billion + $8,299.1 billion
= $12,332.2 billion
b. The value of Government Expenditure = Sum of expenditure by federal Government and State & Local government
= $1224.0 billion + $1994.9 billion
= $3218.9 billion
c. Gross Investment = Sum of investment and inventories
=Non-residential fixed investment + Residential fixed investment + Change in private inventories
= $2336.2 billion + $645.4 billion + $111.9 billion
= $3093.5 billion
d. Nominal GDP = C + I + G + (X-M)
= $12332.2 billion + $3093.5 billion + $3218.9 billion + ($2264.9 billion - $2789 billion)
= $18120.5 billion
It cant be B because the exit wound is usually big , so im going with A
