Answer: Economies of scale
Explanation:
Economies of scale occurs when there is a reduction in cost as a result of an increase in production. Economies of scale are the cost advantages which a business can exploit through the expansion of its scale of production. The aim of economies of scale is to lower the average costs of production.
When the car manufacturer diversifies his operation by producing pickup trucks and SUVs, there'll be a reduction in the average unit cost of output. This term refers to Economies of scale.
Answer:
846,000 shares
Explanation:
According to the scenario, computation of the given data are as follows:
Outstanding common stock = 807,000 shares
Outstanding option stock = 150,000
option price = $37
Market price of common stock = $50
So, 150,000 - (150,000 × $37 ÷ 50)
= 150,000 - 111,000
= 39,000
So, Number of shares = 807,000 + 39,000
= 846,000 shares
Answer:
The expected rate of return on the market portfolio is 14%.
Explanation:
The expected rate of return on the market portfolio can be calculated using the following capital asset pricing model (CAPM) formula:
Er = Rf + B[E(Rm) - Rf] ...................... (1)
Where:
Er = Expected rate of return on the market portfolio = ?
Rf = Risk-free rate = 5%
B = Beta = 1
E(Rm) = Market expected rate of return = 14%
Substituting the values into equation (1), we have:
Er = 5 + 1[14 - 5]
Er = 5 + 1[9]
Er = 5 + 9
Er = 14%
Therefore, the expected rate of return on the market portfolio is 14%.
Answer:
b. Part of both the performance measurement system and the performance reward system
Explanation:
Both are linked according to the objectives and golas.
Performance measure is a quantifiable expression of the amount, cost, or result of activities that indicate how much, how well, and at what level, products or services are provided to customers during a given time period.
Performance and reward strategies are driven by the concept that employees are not inherently born with the desire to come to work and put in their maximum effort every day for no reason at all. ... An effective performance and reward strategy aligns with organizational goals and objectives
Answer:
Fixed and Variable cost:
Fixed cost are the costs which cannot be changed with change in the level of goods and services sold or produced.
Variable cost are the costs which changes with change in the level of output produced and sold.
Product and Period cost:
Product costs are the costs which are incurred for making the product such as direct material, factory overhead and direct labor, etc.
Period costs refers to the cost which are incurred for a certain period of time. It is normally associated with the time period than with any type of transactional event.
Therefore, the classification of items is as follows:
(a) Variable cost - Product cost
(b) Variable cost - Product cost
(c) Fixed cost - Period cost
(d) Fixed cost - Period cost
(e) Fixed cost - Period cost
(f) Fixed cost - Period cost
(g) Variable cost - Product cost
(h) Fixed cost - Period cost
(i) Fixed cost - Period cost
