Answer:
b. False
Explanation:
In a competitive environment, pricing strategy is one of the strategies to ensure efficiency and profitability. But lowering of prices at the expense of deterioration in the quality of product offerings cannot be a recommended strategy.
The four competitive strategies specified by Michael Porter are namely, Cost Leadership, Differentiation, Cost Focus and Differentiation focus.
Under Cost leadership, a firm strives to offer it's products at the lowest cost and be the cost leader in an industry.
Differentiation refers to adding unique attributes and values to the products which differentiates such products from those of the competitors.
Cost focus refers to cost leadership when targeted at a particular marketing segment and similarly, differentiation focus is differentiation when applied to a specific marketing segment.
A firm cannot focus at price at the expense of quality of it's offerings. Thus, keeping prices down isn't all which matters.
Unemployment taxes are levied on the FIRST 7,000 of an employees wages paid each year.
So for the fulltime employees, you only count 7,000 of their salaries.
The corporation will pay taxes on 14,000 for full-time and 4,000 from part-time or 28,000 total. If the rate is 5.4%, the total taxes paid will be
28,000*5.4% = $1,512
Answer:
B. 317,000
Explanation:
Statement of Equivalent production
Particulars Conversion % Completion Equivalent Conversion
Opening WIP 80,000 80% 64,000
Units started & 250,000 100% 250,000
completed
Ending WIP 30,000 10% <u>3,000 </u>
Equivalent Units <u>317,000 </u>
Answer: a. $44,617
Explanation:
The Internal Rate of Return brings the NPV of a project to zero which means that the cost of the project will be the Net present value of the cash inflows using the IRR as the discount rate.
This is a constant payment so can be treated as an annuity.
Present value of annuity = Annuity * Present value interest factor of annuity, 4 years , 13%
= 15,000 * 2.9745
= 44,617.5
= $44,617 approx
