Answer:
workers may provide less-than-expected work effort.
Explanation:
Principal-agent problem
This is also called Agency problem. It is simply defined as a type of problem of motivating one party that is the agent just to act on behalf of another person which is the principal. This problems arise usually when incentives between the agent and the principal are not perfectly aligned or in tune.
This form of problem is also said to occur when agents example a firm's managers tends to run after their own personal goals rather than the goals of the principals who is the firm's owners.
Agency relationship
This form of relationship is said to occur if there is a set up or an arrangement in where one person's welfare is dependent or based on what another person does.
Agent
This is simply known as an Individual whose services has being employed by a principal so as to help achieve the principal's objective.
Principle
This is also known as a person who simply employs the services of one or more agents so as to obtain or achieve an objective.
Answer:
Option (C) is correct.
Explanation:
Manufacturing costs:
= Direct Materials + Direct Labor + Variable overhead
= $160,000 + $80,000 + (150,000 × 75%)
= $160,000 + $80,000 + $112,500
= $352,500
Operating income:
= Sales (1,100 units) - Manufacturing costs
= $370,000 - $352,500
= $17,500
Therefore, if Model A02777 is dropped from the product line, operating income will decrease by $17,500.
Answer:
The correct answer is: Specialization.
Explanation:
Specialization happens when a person, business or region focuses their productive efforts on a smaller subset of tasks or products to gain a competitive advantage. By specializing, a person or company often becomes better at that task or production than competitors. Usually, the choice is driven by the skills that suits the best to the people or company handling the business.
Answer:
$2,740,251.24
Explanation:
Applying power sizing technique or an exponential model to determine the cost of new boiler.
This model identify the cost variation along with change in capacity or power of the equipment.
Where,
Cb = Cost of new plant
Sa = capacity of new plant
Sb = capacity of old plant
x = cost capacity factor
Therefore,
= 2,000,000 × 1.3701
= $2,740,251.24
