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aalyn [17]
3 years ago
6

Companies choose to Vertically Integrate for all of the following reasons, except____________.a. The company can perform the pro

cess better internallyb. The activity is tightly integrated with existing internal processesc. The company wants tighter control over scarce inputsd. The company desires to enter new markets
Business
1 answer:
QveST [7]3 years ago
8 0

Answer:

The correct answer is letter "D": The company desires to enter new markets.

Explanation:

Vertical integration happens when a corporation buys other companies in the supply chain and manages them. There are two types of vertical integration: <em>backward </em>and <em>forward</em>. In backward vertical integration a corporation, like a manufacturer, owns companies that supply inputs to the manufacturing process for businesses.  

In forward vertical integration, a business owns another company in the supply chain to get closer to the end customer.

Thus, <em>vertical integration is not a technique companies use to enter new markets.</em>

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Why does the risk of incorrect rejection result in an efficiency loss to the auditor?
Sever21 [200]
© 2017 Quizlet Inc.
8 0
3 years ago
The city of New Orleans has 200 advertising companies, 199 of which employ designers of normal ability at a salary of $100,000 a
zepelin [54]

Answer:

a. $700,000

b. 6/7 or 85.7%

c. No they will not.

Explanation:

a. Jacobs will earn the normal salary that the other designers in the other companies are getting in addition to the incremental income he brings to the company as a result of his talents.

Incremental income = Revenue with Jacobs - Revenue without Jacobs

= 1,000,000 - 400,000

= $600,000

Jacobs earnings = Normal designer earnings + incremental income

= 100,000 + 600,000

= $700,000

b. Economic rent is the excess amount that the company is paying Jacobs over what it should normally cost to get a designer.

Normal cost of designer is $100,000. Company is therefore paying an economic rent of $600,000.

Proportion of Jacobs salary that is economic rent = \frac{Economic rent}{Jacobs annual earning}

= \frac{600,000}{700,000}

= 6/7 or 85.7%

c. The company hiring Jacobs will not be making an economic profit because for them to make an economic profit they would have to be making more than the $400,000 that the other firms make. They cannot make this amount because for them to do so they would have to reduce the amount they pay Jacobs. If they do so, Jacobs would leave for greener pastures and then they would be making the same $400,000 that the rest are making.

8 0
3 years ago
Beatrice Markets is expecting a period of intense growth and has decided to retain more of its earnings to help finance that gro
VLD [36.1K]

Answer: $16.69

Explanation:

Using the Dividend growth model, the value is:

= [Dividend 1/ (1 + required return)] + [Dividend 2/ (1 + required return)²] + [Terminal value / (1 + required return)²]

Terminal value = Dividend after 2 years / (required return - growth)

= 2.50/ (14.5% + 0%)

= $17.24

Dividend 1 = 3.60 * ( 1 -30%)                                Dividend 2 = 2.52 * ( 1 -30%)

= $2.52                                                                                     = $1.76

Market value = (2.52 / 1.145) + (1.76 / 1.145²) + (17.24/1.145²)

= $16.69

3 0
3 years ago
Simplifying the ABC System: TDABC Golding Bank provided the following data about its resources and activities for its checking a
IRISSAK [1]

Answer:

1.$20 per hour

2. Processing accounts $4 per account

Issuing statements $2 per statement

Processing transactions $1 per transaction

Answering inquiries $3 per inquiry

$40,000

Explanation:

1. Calculation to determine the capacity cost rate for the checking account process

Using this formula

Capacity cost rate= Total resources / Total checking processing hours

Let plug in the formula

Capacity cost rate= $400,000 / 20,000

Capacity cost rate= $20 per hour

Therefore the capacity cost rate for the checking account process is $20 per hour

2. Calculation to determine the activity rates for the four activities.

Processing accounts= 0.20 × $20

Processing accounts= $4 per account

Issuing statements= 0.10 × $20

Issuing statements= $2 per statement

Processing transactions= 0.05 × $20

Processing transactions= $1 per transaction

Answering inquiries= 0.15 × $20

Answering inquiries= $3 per inquiry

Therefore the activity rates for the four activities are:

Processing accounts $4 per account

Issuing statements $2 per statement

Processing transactions $1 per transaction

Answering inquiries $3 per inquiry

Calculation to determine the cost of the issuing statements activity If the total of issuing statement was 20,000

Using this formula

Cost of the issuing statements activity= Issuing statements*Total of issuing statement

Cost of the issuing statements activity

Let plug in the formula

Cost of the issuing statements activity= 20,000 × $2

Cost of the issuing statements activity= $40,000

Therefore the cost of the issuing statements activity is $40,000

7 0
3 years ago
Service industry, job costing, law firm. Kidman &amp; Associates is a law firm specializing in labor relations and employee-rela
evablogger [386]

Answer:

Explanation:

Budgeted direct cost rate= budgeted direct cost/professional labor hours available =97500/1500=$65 per labor hour

Budgeted indirect cost rate= Budgeted indirect cost/ professional labor hours = 2475000/45000= $55

Job R:

Direct cost:

Job R - 120H*65=7800

Add: Indirect cost:

120H* 55=6600

TOTAL R JOB=14400

Job P:

DC:

Job P - 160H*65=10400

IC:

160H*55=8800

TOTAL P JOB=19200

8 0
3 years ago
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