Answer:
A. specialization.
Explanation:
Specialization refers to dividing the job in different tasks and assigning a person to perform each one which makes that each person becomes an expert in the specific area. This could help to increase productivity, especially in manufacturing. This is the process the Miller family uses because they have divided the tasks and assigned each of them to a person.
Answer:
$116.28
Explanation:
This can be calculated as follows:
Mark up = [1 ÷ (1 - Lerner index)]
Price = Mark-up × Marginal cost
= [1 ÷ (1 - 0.57)] × $50
Price = [1 ÷ 0.43] × $50 = $116.28
Therefore, the price this firm will charge its customers is $116.28.
Answer:
Minimum transfer price when operating at capacity is the marginal cost + opportunity cost
Maximum transfer price is marginal cost only, when not operating at capacity.
Explanation:
Minimum transfer price when operating at capacity is the marginal cost + opportunity cost because when operating at capacity there are 2 elements involved - the cost at which it has made the units it will be transferring to another department within the organisation, and the profit it would have made if it had sold those units to others (opportunity cost)
Maximum transfer price is marginal cost only, when not operating at capacity because the department is constrained, it can only produce for the satisfaction of internal demand, not external customers; hence there is no case of opportunity costs.
Answer:
$24,000
Explanation:
For computing the implied goodwill, first, we have to calculate the total partners capital and total firm capital
Total partners capital = $80,000 + $40,000 + $36,000
= $156,000
Now the total firm capital would be
= $36,000 ÷ 20%
= $180,000
Now the implied goodwill would be
= $180,000 - $156,000
= $24,000
Answer: $100
Explanation:
If the reserve requirement is 20% then the required reserves being held by the company is:
= Total deposits * reserve requirement
= 8,000 * 20%
= $1,600
The reserves held by the company of $1,700 comprise of both the required reserves and the excess reserves. The excess reserves will therefore be calculated as:
Excess reserves = Reserves - Required reserves
= 1,700 - 1,600
= $100
