Answer:
When the industry is growing rapidly and the target industry is comprised of several relatively large and well-established firms.
Explanation:
Diversification is a form of growth strategy. Growth strategies involve a significant increase in performance objectives (usually sales or market share) beyond past levels of performance. Many organizations pursue one or more types of growth strategies. One of the primary reasons is the view held by many investors and executives that "bigger is better." Growth in sales is often used as a measure of performance. Even if profits remain stable or decline, an increase in sales satisfies many people. The assumption is often made that if sales increase, profits will eventually follow. Diversifying is therefore appealing when the target company has large sales factor and well established firms
This is an example of a mental set, which can sometimes be a useful framework for solving problems. In Zelma's case though, her mental set is limited to certain words and she is unable to think of possibilities outside of that set.
Answer:
a. I have corrected the discrepancy in the Taylor account.
Explanation:
When expressing oneself the message needs to be concise and pass accross the intended idea in as few words as possible.
The second option (As per your suggestion, I have corrected the discrepancy in the Taylor account) is wordy and we can do without the first part of the sentence (As per your suggestion).
The selected option avoids long lead-ins, is written in an active voice, and has a conversational tone.
Answer:
400 bottles should be ordered at a time
25 orders should the warehouse place in a year to minimize inventory cost
Explanation:
With regards to the above , we will calculate the economic order quantity
Given that;
Annual demand = 10,000
Cost per order = $96
Holding cost per unit = $12
EOQ = √ 2 × Annual demand × Cost per order / Holding cost per unit
EOQ = √ 2 × 10,000 × $96 / $12
EOQ = 400 bottles
Number of order = Total demand / Economic order quantity
= 10,000 / 400
= 25 orders.
Therefore,
400 bottles should be ordered at a time
25 orders should the warehouse place in a year to minimize inventory cost
Answer:
$200,000
Explanation:
The computation of the amount of pension expense is shown below:
= Service cost + interest cost - expected return + amortization + actuarial gain
= $120,000 + $2,500,000 × 6% - $2,000,000 × 8% + $40,000 + $50,000
= $120,000 + $150,000 - $160,000 + $40,000 + $50,000
= $200,000
Hence, the amount of pension expense is $200,000 and the same is to be considered