Answer: They should not
Explanation:
The Social cost of a project refers to the total cost that society incurs as a result of the project. This includes the actual costs to the investors as well as the cost to society such as pollution. Likewise the social benefit is the entire benefit that accrues from the project.
When using the Social Cost Benefit Analysis, one should not pick a project that has a higher social cost than social benefit because it would lead to a social loss. In order words, the project would cost society more than society would benefit from it so there is no need to embark on such a project.
Answer:
D. Step cost
Explanation:
Riddell Company manufactures one type of basketball. Each basketball is sold for $55 and the individual contribution margin is $27. Total fixed costs are $185,000 annually. Included in fixed costs are two production supervisor’s salaries of $96,000. Management estimates that production supervisors can effectively oversee the production of 6,000 basketballs. After that, an additional production supervisor needs to be hired.
Production supervisor’s salaries are a step cost which are expenses that are constant for a given level of activity and does not change steadily with changes in activity volume, but rather at discrete points.
Answer:
Directive
Explanation:
Under directive style of leadership, a leader's approach is more of commanding and directive in nature in the sense, the leader will assign tasks and issue directions with respect to how those tasks are to be executed.
This approach is more formal and works in an environment where the job of the subordinates does not require specialization. So in such cases, the subordinates need to be guided and commanded in order to avoid uncertainty in task execution.
In the given case, Timothy is focused upon maintaining clarity with respect to direction and the performance of tasks. His leadership style incorporates quick decision making, focusing upon short term targets.
This is an example of directive form of leadership.
Answer:
$41.56
Explanation:
Since Antiques' dividends have a negative growth rate, we must adjust the perpetuity growth formula to recognize that negative growth:
stock price = [dividend (1 + growth rate)] / (required rate of return - growth rate)
- dividend = $7
- growth rate = -5%
- required rate of return = 11%
stock price = [$7 (1 - 5%)] / (11% - -5%) = ($7 x 95%) / 16% = $6.65 / 16% = $41.56
