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3 years ago

Garvin's ________ definition of quality states that if the customer is satisfied, the product has good quality.

1 answer:

5 0

Garvin's USER BASED definition of quality states that if the customer is satisfied, the product has good quality.
David Garvin is an Havard professor who wrote a book titled 'Managing quality'. In his book, Garvin summarized five major approaches to defining quality. The approaches are: product based view, user based view, transcendental view of quality, manufacturing based view and value based view.<span />

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Jessica Simpson sets up shop to sell “Buffalo Wings.” She observes that if the price drops from $3.50 per order to $2.50 per ord

Sidana [21]

Answer:

(I) Price elasticity = 1/6

(II) the $2.5 price gives the higher revenue: 1,250

Explanation:

(I) price elasticity

$E_s =\frac{\frac{Q2 - Q1}{(Q2+Q1)/2}}{\frac{P2 - P1}{(P2+P1)/2}}$

↑Q (500 - 300)/((500+ 300) / 2)

↑Q 200 / (800/2) = 200/400 = 1/2

↑P (3.5 - 2.5)/((3.5+2.5)/2)

↑P 1/(6/2) = 1/3

$Es = \frac{1/2}{1/3} = 1/6$

(II) total revenue

3.5 x 300 = 1,050

2.5 x 500 = 1,250

7 0

3 years ago

Read 2 more answers

If a company raises money by issuing new stocks, a current shareholder has the right to purchase new shares on a pro rata basis

Mumz [18]

Answer:

d. preemptive right

Explanation:

Preemptive rights refers to the clause that is included in a merger agreement or security that allows an investor to buy a proportionate number of shares to be issued in the future in order to protects him from losing his percentage ownership of a company.

The aim a preemptive right is to avoid a situation whereby the management of the company take over the control of the company by issuing and buying extra shares of the corporation to themselves. It basically aims to prevent the dilution of the value of stockholders.

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3 years ago

Read 2 more answers

A machine with a cost of $144,000, current year depreciation expense of $20,500 and accumulated depreciation of $92,000 is sold

Svetllana [295]

Answer:

a. $20,500

Explanation:

The cashflow using the indirect method has basically 3 segments namely; Cashflow from operating activities, Cashflow from investing activities and Cashflow from financing activities.

Cashflow from operating activities considers the net profit before tax and then adjustments for non cash items like depreciation. Hence from the question given, the current year depreciation ($20,500) is a part of the Cashflow from operating activities.

Other cost elements stated in the question are considered under investing activities.

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3 years ago

In October, Pine Company reports 20,700 actual direct labor hours, and it incurs $124,200 of manufacturing overhead costs. Stand

mars1129 [50]

Answer:

$18,810 Unfavorable

Explanation:

The computation of the overhead volume variance is shown below:-

Overhead volume variance = Budgeted Overheads - Recovered Overheads

= (20,700 × $4.45 + $54,000) - (20,700 × $6.15)

= $92,115 + $54,000) - (20,700 × $6.15)

= $146,115 - $127,305

= $18,810 Unfavorable

Here, the budgeted overhead is more than recovered overhead so it becomes unfavorable.

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2 years ago

At the end of a reporting period, ABC determines that its ending inventory has a cost of $300,000 and a net realizable value of

Phantasy [73]

Answer:

Decrease total assets and net income.

Explanation:

There is an inventory write down because the value of inventory has decreased. The net realizable value of inventory is less than its cost.

Inventory write down involves expensing a part of the inventory asset in the current period.

As a result of the write down, inventory would decrease. Inventory is part of total assets. Thus, total assets would decrease

Also, cost would increase because of the write down and so net income would decrease.

6 0

2 years ago