Answer:
The Bullwhip Effect
Explanation:
Bullwhip effect is a phenomenon that occurs in an organisation's channel of distribution due to swings or erratic demands for products by customers. This erratic nature of demands will usually lead to forecasting inefficiencies especially in meeting the demands through the supply chain.
A sudden increase in demand could lead to production planning problems because there might not be enough inventory of materials on ground to meet the demand. Also, a sudden decrease in demand can bring the challenge of excess inventory of materials which may not be needed for production for a while.
One of the measures taken to manage this erratic nature of demands is to ensure that whatever the forecasts for demands is, safety stock must be included to the forecast level of demand so as to ensure that production planning is adequate and the demands are met as well.
Answer: $0.75
Explanation: predetermined overhead rate = estimated manufacturing overhead cost/total overhead cost
estimated manufacturing overhead cost (labor cost) = $ 150000
total overhead cost = $200000
⇒ predetermined overhead rate = 150000/200000 = $0.75
Answer:
increase in the price of raw materials
Explanation:
Stagflation is a period of both persistent high inflation and decline in gross domestic product of an economy.
Inflation occurs when general price level rises.
Stagnation is caused by a fall in production of goods and services in the economy. An increase in the price of raw materials can discourage production.
I hope my answer helps you
Answer:
Option "A" is the correct answer to the following statement.
Explanation:
Implicit cost is a special type of opportunity cost, its generate when an organization or a business has to pay his cost and does not necessary to show it. for example, a businessman gets a salary from his organization.
- In this situation, Wilson owns a club and works as an accountant in it.
- This type of cost defines an Implicit cost for Wilson's health club.
