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3 years ago

The EOQ equation is derived by setting the annual purchase cost equal to the annual holding cost. True False

Business

1 answer:

vova2212 [387]3 years ago

3 0

Answer:

True

Explanation:

As the purchase cost is the variable cost that is the variable cost of the goods is expressed as the purchase units price x annual demand quantity and is P into D. And the holding cost is the average quantity in stocks and is q/2 and is given as H x Q / 2. Thus Q is an independent and is a function of the K, D, h

Hence the E.O.Q is given as Q = √2 Dk / h

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When poor performance is attributed to a lack of knowledge, team members are most likely to respond by

k0ka [10]

It should be noted that when poor performance is attributed to a lack of knowledge, it's important to undergo training.

<h3>What is training?</h3>

Training simply means the act of teaching an individual a particular skill. This is necessary in organizations to achieve the goals.

When poor performance is attributed to a lack of knowledge, team members are most likely to respond by undergoing training. This will give them the required knowledge.

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2 years ago

Investment X offers to pay you $4,200 per year for eight years, whereas Investment Y offers to pay you $6,100 per year for five

Sloan [31]

Answer:

<em>The cash flow stream from investment X has higher present value than the the cash flow stream from investm Y.</em>

Explanation:

<u></u>

<u>1. Present value of investment X</u>

Annual payment: C = $4,200
Number of years: t = 8
Rate: r = 5%
PV₁ = ?

Formula:

$PV=C\times [\dfrac{1}{r}-\dfrac{1}{r(1+r)^t}]$

Substitute and compute:

$PV_1=\$ 4,200\times [\dfrac{1}{0.05}-\dfrac{1}{0.05(1+0.05)^8}]$

$PV_1=\$ 27,145.49$

<u>2. Present value of investment Y</u>

Annual payment: C = $6,100
Number of years: t = 5
Rate: r = 5%

Formula:

$PV=C\times [\dfrac{1}{r}-\dfrac{1}{r(1+r)^t}]$

Substitute and compute:

$PV_2=\$ 6,200\times [\dfrac{1}{0.05}-\dfrac{1}{0.05(1+0.05)^5}]$

$PV_2=\$ 26,409.81$

Hence, the cash flow stream from investment X has higher present value than the the cash flow stream from investm Y.

4 0

3 years ago

The unemployment rate may underestimate the true extent of unemployment if: Question 26 options: many part-time employees would

den301095 [7]

Answer:

there are a large number of people working in the underground economy.

Explanation:

The unemployment rate is the rate of people in the labour force that is without a job but they are actively looking for employment

Types of unemployment

structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition. Structural unemployment tends to be permanent.

Frictional unemployment: the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.

Voluntary unemployment: e.g. worker at a fast-food restaurant who quits work and attends college.

Cyclical unemployment: it occurs as a result of fluctuations in the economy. Unemployment would be high in a downturn and low in a boom

If a large number of people are working underground, they would not be counted as part of the labour force and so the labour force would be smaller. This understates unemployment rate

7 0

3 years ago

The price of a camera decreases from $200 to $180, and in response to the price change the quantity demanded increases from 60 t

bonufazy [111]

The price of a camera decreases from $200 to $180, and in response to the price change the quantity demanded increases from 60 to 70 units. Therefore, demand for cameras in this price range is inelastic.

An economic word known as "inelasticity" describes an item or service's unchanging quantity when its price varies. When prices rise, consumers' purchasing patterns essentially stay the same, and when prices fall, those same purchasing patterns still hold true. This is known as inelastic demand. When an item or service's quantity remains constant when its price increases, it is said to be "inelastic. "When a good or service's price increases or decreases, consumers' purchasing patterns essentially stay the same. The same is true when the price of the good or service decreases. The demand for an item or service that is totally inelastic would not fluctuate regardless of price; however, no such good or service exists. Elastic contrasts with inelastic.

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7 0

1 year ago

On November 28, 2021, Shocker receives a $2,250 payment from a customer for services to be rendered evenly over the next three m

Daniel [21]

Answer:

Dec 31, 2021

DR Deferred Revenue ...................................................$750

CR Service Revenue ...............................................................$750

Working

Service provided at end of November so only one month left in the year. Revenue earned is;

= 2,250/ 3 months

= $750

Dec 31, 2021

DR Advertising Expense ..................................................$750

CR Prepaid Adevertising............................................................$750

Working

Advertising is for 3 months and only one month has elapsed;

= 2,250/ 3 months

= $750

Dec 31, 2021

DR Salaries Expense ............................................................$6,500

CR Salaries Payable...........................................................................$6,500

Dec 31, 2021

DR Interest Expense .............................................................. $1,650

CR Interest Payable...............................................................................$1,650

Working

9% is payable on the note for the year.

This figure will be apportioned monthly and since 4 months were left when it was signed, the interest will be for 4 months

= 55,000 * 9% * 4/12 months

= $1,650

7 0

3 years ago