Answer:
Hybrid System
Explanation:
With the increase in competition in the business environment, companies are now adopting a hybrid strategy. A hybrid strategy is one that aims at standardizing processes, and at the same time attempting to meet individual customer needs. The businesses adopt a cost and differentiation model so as to provide optimum satisfaction to the customers. Adopting just one strategy would slow the growth of the company making it difficult for them to compete.
The hybrid system adopted could be sequential or simultaneous. The sequential strategy is one in which the company first adopts one strategy (example, cost-effectiveness), before moving unto the next strategy (example, differentiation). The simultaneous strategy, however, is one in which the two strategies are employed at the same time.
Answer:
The best illustration of a firm adhering to the goal of financial management is:
b. Decrease in the per-unit production costs
Explanation:
Financial management is the process by which a firm plans, controls and monitors their financial resources to ensure that the cost is minimized, while at the same time maximizing their profit. Since financial resources is the fuel that drives a business, its usage has to be managed to ensure short-term and long-term financial success. This is done by increasing the value creating efficiency with very minimal financial resources. To achieve the goal of financial management, various strategies have to be applied to achieve this goal. They include;
1. Financial planning: good financial management indicates that a firm needs have prior information on how their business operates. With this information, the financial managers can therefor plan for the future. Each firm has it's organizational and operational financial needs. These needs if known earlier, a financial plan can be drafted and implemented to adequately meet these needs.
2. Budgeting: this is a tool that can be used to know how much a firm is willing to spend in terms of cost. Budgets are usually broken down into categories in order to know which sectors utilize the highest amount of financial resources to minimize wastage.
3. Risk management: a firm needs to first assess sources and levels of risk, then mitigate against the risk. Risk mitigation if done appropriately can help save on costs associated with the risk.
4. Monitoring: all the strategies applied need to be constantly evaluated to ascertain that they are productive. This is beneficial in determining the strategies that work and those that need improvement.
In our case the best illustration of a firm adhering to the goal of financial management is a decrease in the per-unit production costs.
Explanation:
Italy's opportunity cost of producing a pound of cheese is
= 5 barrels of beer
Germany's opportunity cost of producing a pound of cheese is
= 10 barrels of beer
Italy's opportunity cost of producing a barrel of beer is
=
= 0.2 pounds of cheese
Germany's opportunity cost of producing a barrel of beer is
=
= 0.1 pounds of cheese
Italy has a comparative advantage in producing cheese, while Germany has a comparative advantage in producing beer.
A country is said to be enjoying a comparative advantage if it can produce a good at a lower opportunity cost.
Italy can gain from trade if it is getting more than 5 barrels of beer for each pound of cheese. Similarly, Germany can gain from trade if it is getting more than 0.1 pounds of cheese.
Both the countries will gain from the trade if the price of trade is 8 barrels of beer per pound of cheese and 9 barrels of beer per pound of cheese.
Italy will not accept 3 barrels of beer per pound of cheese and 1 barrel of beer per pound of cheese because it is not covering the opportunity cost.
Answer:
Operating cash flow = $501
Explanation:
Given:
Total sales = $1,460
Total cost = $800
Depreciation = $130
Tax rate = 30% = 0.30
Find:
Operating cash flow
Computation:
Earning Before Interest and Tax = $1,460 - $800 - $130
Earning Before Interest and Tax = $530
Tax = Tax rate x $530
Tax = 0.30 x $530
Tax =$159
Operating cash flow = $530 + $130 - $159
Operating cash flow = $501
Answer:
Book value= $260,000
Explanation:
<u>First, we need to calculate the annual depreciation using the following formula:</u>
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (360,000 - 60,000) / 6
Annual depreciation= $50,000
<u>Now, at the beginning of the third year, the asset accumulated depreciation two times.</u>
Accumulated depreciation= 50,000*2 = 100,000
<u>Finally, the book value:</u>
<u></u>
Book value= purchase price - accumulated depreciation
Book value= 360,000 - 100,000
Book value= $260,000