Answer:
The correct answer is letter "B": anchoring.
Explanation:
Anchoring bias or focalism takes place when individuals make decisions driven by the first impression obtained on a certain matter. Under this situation, those individuals do not take well-educated decisions since there has not been an analysis of the pros and contras of picking that choice over others.
Answer:
0.95 and 1.06
Explanation:
The computation of the present value index is shown below:
Present value index = Present Value of net cash Flow ÷ Amount invested
So for each projects, it would be
Particulars Des Moines Cedar Rapids
Total present value of
net cash flow (A) $712,500 $848,000
Amount invested (B) $750,000 $800,000
Present value index (A ÷ B) 0.95 1.06
Answer:
B. $ 51 per unit
Explanation:
The computation of the unit product cost using variable costing is shown below:
= Direct material per unit + direct labor per unit + variable manufacturing overhead per unit
= $7 units + $26 + $18
= $51 per unit
It recognizes only variable cost like - direct material, direct labor, and variable manufacturing cost. Hence, all other information is ignored
Answer:
b-The required return on Stock A will increase by less than the increase in the market risk premium, while the required return on Stock C will increase by more than the increase in the market risk premium.
Explanation:
Beta reflects the risk associated, as the beta is low, the expected risk is also low, accordingly return expected is also keeping all things constant.
When Beta is less than 1 it means the returns will be lower than market, accordingly for Stock A the return will increase but slower than the market risk.
Whereas, the Beta is more than 1 of Stock B and accordingly the risk is more but return will grow even faster as the risk volatility is high than the market risk.
Answer:
Wide span of management.
Explanation:
Wide span of management involves a single manager overseeing a large number of employees, and this gives rise to a flat structure. A manager's span of control is the number of subordinates he supervises.
This form of management is ideal if employees are very competent, there is well defined standard operating procedure, and there is low expectation for problems.
In this situation there is no need for many managers as the employees to a large extent manage themselves effectively to meet set goals.
