To transform resources into profits, organizations combine type types of work - operations and ___________.

1 answer:

4 0

Answer: Apart from the resources, there are three important factors for production, these are work (people or man hours available), investment (machinery and equipment needed) and organization (business planning).

Explanation: The first three factors were selected by the classical economy where Adam Smith and David Ricardo appeared, to these other organizational factors have been added, however their objective is the same, so that a company achieves the goals set, it has the task of combining these factors in the best way possible. Example: maximize man hours, use the best machinery, that the land or resources are prepared for production.

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When an Accounts Payable department improves their information system resulting in faster payments to vendors, without the Accou

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Answer: C) suboptimization

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The Accounts Payable department's system has been optimized yet the Accounts receivable's system has not been optimized. This means that the company as a whole is suboptimized because only one department was optimized and the other was not.

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A given investment project will cost RM400,000. Incremental annual cash flows after taxes are expected to be RM80,000 per year f

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Answer:

Based on the profitability index method, the investment should not be accepted.

It does not produce enough cash flows to justify the investment.

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The profitability index method measures the present value of benefits for by dividing the present value of benefits by the present of initial investments.

The present value of initial investment in this project remains RM400,000. The present value of incremental annual cash flows of RM80,000 after taxes for 5 years will be equal to:

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Then the next step is to divide the present value of benefits by the initial investment as follows:

RM293,440/RM400,000 = 0.7336 = 73.36%

The implication is that the present value of the benefits is less than the initial investment costs. The project should then be rejected.

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