It’s the 3rd one . A specific college website such as UCLA.edu
Answer:
Shoe leather cost
Explanation:
Inflation is a persistent rise in general price levels.
shoe leather cost is the cost incurred by people that do not want to hold cash in a period of high inflation so as to avoid paying inflation tax.
Nick's shoe leather costs includes buying goods immediately he is paid and converting the money he cant spend into foreign currency
Answer:
a)
- Prevention costs: costs incurred in order to prevent failures or minimize defects, they include maintenance expenses = $11,000
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Appraisal costs: costs incurred in order to make sure that the products meet quality standards and customers' expectations, they include inspection costs = $15,000
-
Internal failure costs: costs incurred due to faulty products or procedures that occur before any good is actually taken out of the facilities, they include scrap and rework ($10,600) and machine breakdown costs ($5,400) = $16,000
- External failure costs: costs incurred after the goods leave the facilities, they include warranty expenses ($34,000), product returns due to defects ($6,000) and lost sales due to low quality ($10,000) = $50,000
Quality cost report:
Prevention costs
- Machine maintenance expense $11,000 $11,000
Appraisal costs
- Inspection cost $15,000 $15,000
Internal failure cost :
- Scrap & rework $10,600
- Machine breakdown costs $5,400 $16,000
External failure costs :
- Warranty expense $34,000
- Product returns due to defects $6,000
- Estimated lost sales due to poor quality $10,000 <u>$50,000</u>
Total quality cost $92,000
b) What percentage of sales revenue is being spent on prevention and appraisal activities?
total sales revenue = $500,000
prevention and appraisal costs = $26,000
% = $26,000 / $500,000 = 5.2%
c) What percentage of sales revenue is being spent on internal and external failure costs?
internal and external failure costs = $66,000
% = $66,000 / $500,000 = 13.2%
Answer: (C) will operate further from its efficient scale.
Allocative inefficiency due to unregulated monopoly is characterized by the condition: P>MC.
Allocative inefficiency happens whilst the purchaser does no longer pay a green price. A green charge is one that just covers the costs of manufacturing incurred in supplying the good or provider. Allocative efficiency occurs while the company's fee, P, equals the greater (marginal) cost of delivery, MC
Monopolies can boom fees above the marginal fee of manufacturing and are allocative inefficient. that is because monopolies have marketplace strength and may boom rate to reduce client surplus.
Allocative efficiency occurs while consumer demand is completely met by means of supply. In other words, organizations are presenting the precise supply that clients want. For an instance, a baker has 10 customers trying an iced doughnut. The baker had made exactly 10 that morning – that means there's an allocative performance.
Learn more about Allocative efficiency here:
brainly.com/question/14471969
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