Answer:
The answer is A True
Explanation:
AFN which is "additional funds needed" is a concept used commonly in business looking to expand operations and influence. Since a business that seeks to increase its sales level will require more assets to meet that stated goal, some provision must be made to accommodate the change in assets. AFN is a way of calculating how much of new funds will be needed, so that the firm can realistically look at whatever or not they will be able to generate the additional funds and therefore be able to achieve the higher sales level.
Economies of scale are cost advantage reaped by companies when production becomes efficient. Firms can achieve economies of scale by increasing production and lowering cost. This does not involve calculating of new funds needed for a realistic expansion of the firm.
Lumpy assets are assets that cannot be acquired in small increments but must be obtained in large, discrete units.
Excess Capacity indicates to a situation in which the demand for a company's goods and services is less than its production capacity. This situation can arise in any firm during the low point in a seasonal industry, where capacity is maintained to match the peak part of the season.
A constant ration can not be meet in this condition of economies of scale, lumpy assets, and excess capacity as these conditions can not be used in raising funds or additional funds that are needed by the industry in its expansion.
Terrence should be concerned about groupthink.
- Groupthink refers to the common opinion or group consensus suppresses people's ability to provide alternative solutions to the problem as a result all the members of the group agree on the same conclusion.
- The desire to promote group cohesion and deduction of common conclusion to a problem negatively affects the promotion of thinking abilities, good decision making abilities, and problem solving abilities of group mates.
- When a team mates derive a common conclusion without an elaborate discussion or with a little discussion. It is indicative of problem of groupthink.
Hence, Terrence should be concerned about groupthink as the team agree on most decisions with little discussion.
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It results in lower short run average cost in economies of sale .
<h3>Economies of scale</h3>
Economies of scale refers to the situation where, as the quantity of output goes up, the cost per unit goes down. This is the idea behind “warehouse stores” like Costco or Walmart. In everyday language: a larger factory can produce at a lower average cost than a smaller factory. Figure 2 illustrates the idea of economies of scale, showing the average cost of producing an alarm clock falling as the quantity of output rises. For a small-sized factory like S, with an output level of 1,000, the average cost of production is $12 per alarm clock. For a medium-sized factory like M, with an output level of 2,000, the average cost of production falls to $8 per alarm clock. For a large factory like L, with an output of 5,000, the average cost of production declines still further to $4 per alarm clock.
One prominent example of economies of scale occurs in the chemical industry. Chemical plants have a lot of pipes. The cost of the materials for producing a pipe is related to the circumference of the pipe and its length. However, the volume of chemicals that can flow through a pipe is determined by the cross-section area of the pipe.
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Answer:
INCREMENTAL cost allocation method
Explanation:
Incremental cost allocation method is the ranking of individual users of the cost object in such a way that the order of users most responsible for the common cost and then uses its ranking to allocate cost among those users. So they'd be ranked from primary user to first incremental user to second incremental user and so on until the cost have been assigned to all users. It requires one user to be seen as the primary user/party and other users to be seen as incremental user/party.
Answer:
Answer is D
Explanation:
d. Construct a 95% confidence interval estimate of the population proportion of the users of this allergy drug who experience drowsiness.
