Answer:
By formation of legally binding contract.
Explanation:
Contacts are a good way for procuring inputs that have well-defined and measurable quality specifications and require highly specialized investments. Because of the high quality expected in the goods procured, having a legally enforceable contact will make the vendor provide high quality products that meets required specifications.
However when contracts dictate a particular price, so if the market price of input were to go down we will still be obligated to buy at the higher price from the vendor.
Increasing the quality of your products can be achieved by doing the
following:
- Using standard raw materials.
- Adopting best work practices.
<h3>What is Quality?</h3>
This is the measurement of standard or excellence of an individual, goods
and services.
It is best for an organization to churn out quality products as it helps to
increase sales and profit. This can however be achieved by using standard
raw materials and practices during production.
Read more about Quality here brainly.com/question/15281075
Answer:
ii, iii, iv
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
If the present value of the cash inflows exceeds the initial cost of the project, NPV is positive
If the present value of the cash inflows is less than the initial cost of the project, NPV is negative
Answer:
Average fixed cost is $1
Explanation:
Given that
Total cost = 10000
Variable cost = 5000
Output = 5000
Recall that
Total cost = fixed cost + variable cost
Fixed cost = total - variable
Fixed cost = 10,000 - 5000
FC = 5000
Also,
Average Fixed cost = fixed cost / output
Thus = 5000/5000
= $1
Therefore, Average Fixed cost is $1.
Also note that
Average variable cost, AVC = $1
Average Total cost, ATC = $2
