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3 years ago

Which of the following would occur if a firm chose not to hold inventory for a given product?

Business

1 answer:

GrogVix [38]3 years ago

8 0

Answer:

C. Order placement costs would increase

Explanation:

Order placement costs are those incurred when ordering a product: for example, the wages of the employees who place the orders, the shipping costs, the cost of tariffs and duties in case the products are imported from abroad, and any other specific costs associated with the process of getting the product from the source to the firm.

If a company chooses not to hold inventory, order placement costs will increase in the moment that they get an order for the good which is not in stock, simply because the good will have to be ordered.

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How does innovation promote economic growth?

Dafna11 [192]

C. Innovation is the creation of new, original ideas. Inventors are usually described as innovative. New inventions create new markets.

Hope this helps!

4 0

3 years ago

Old Camp Company manufactures awnings for its own line of tents. The company is currently operating at capacity and has received

Helen [10]

Answer:

It is more convenient to continue the production in house.

Explanation:

Giving the following information:

The company is currently operating at capacity and has received an offer from one of its suppliers to make the 12,000 awnings it needs for $25 each. Old Camp’s costs to make the awning are $12 in direct materials and $7 in direct labor. Variable manufacturing overhead is 70 percent of direct labor. If Old Camp accepts the offer, $42,000 of fixed manufacturing overhead currently being charged to the awnings will have to be absorbed by other product lines.

Make in house:

Variable costs= 12 + 7 + (7*0.70)= $23.9

Total variable costs= 23.9*12000= 286,800

Buy= 25*12,000= $300,000

It is more convenient to continue the production in house.

3 0

3 years ago

What is a dollar vote

nikdorinn [45]

Answer:

Dollar voting is an analogy that refers to the theoretical impact of consumer choice on producers' actions by means of the flow of consumer payments to producers for their goods and services.

5 0

2 years ago

Rose Company had no short-term investments prior to this year. It had the following transactions this year involving short-term

nataly862011 [7]

Explanation:

April 16: Dr Short-term investment (6000*24) 144000

Cr Cash 144000

(To record purchase of shares of Gem co)

July-7: Dr Short-term investment (3000*55) 165000

Cr Cash 165000

(To record purchase of shares of pepsico)

July-20. Dr Short-term investment (1500*15) 22500

Cr Cash 22500

(To record purchase of shares of Xerox)

Aug-15. Dr Cash (6000*.95) 5700

Cr Dividend income 5700

(To record cash dividend of Gemco)

Aug-28. Dr Cash (3000*30.75 ) 92250

Cr Short-term investment (3000*24) 72000

Cr Gain on sale of investment(3000 * 6.75 N#1) 20250

(To record sale of shares of Gemco ).

Oct-1. Dr Cash (1.60 *3000) 4800

Cr Dividend income 4800

(To record cash dividend of pesico)

Dec-15. Dr Cash ( 6000*1.60) 9600

Cr Dividend income 9600

(To record cash dividend or remaining shares of gemco)

Dec-31. Dr Cash (3000*1.00) 3000

Cr Dividend income 3000

(To record cash dividend )

[N#1: 24-30.75= 6.75 *3000 = 20250]

6 0

3 years ago

Suppose that the alternative uses of an hour of your time in the evening, ranked from best to worst, are (1) study economics, (2

amid [387]

The opportunity cost of studying economics for one hour in this context would be: <span>Watching two half-hour TV sitcoms
Opportunity cost refers to something that you have to sacrifice everytime one alternative is chosen. When the time is spent to study economics, the time available for you to watch tv will be gone.</span>

3 0

4 years ago