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3 years ago

Evaluating and rewarding managers based on absorption basis income can lead to overproduction. true or false

Business

1 answer:

nikklg [1K]3 years ago

5 0

Answer:

True

Explanation:

The absorption basis of income, profits are always high when the production is greater than income because more fixed costs will have been deferred in closing inventory.

So, managers will focus more on increasing production which create huge balances of closing stocks and consequently results in large profits.

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Suppose the government has determined that the socially optimal quantity of chemical pollution is 175 million tons per day. One

enot [183]

Given this quantity of permits, the price for each permit in the market that the U.S government should charge for pollution rights will be $45 as this ensures the socially optimal quantity of pollution, which could have been imposed as a tax.

<h3>What are pollution rights?</h3>

Pollution rights are the rights given to firms in an economy to buy and sell government-issued licenses or permits.

Pollution rights or permits grant the holders the right to create and release a certain amount of pollution that achieves the socially optimal quantity.

Thus, given the number of permits, the price for each permit in the market that the U.S government should charge for pollution rights will be $45.

Learn more about pollution problems at brainly.com/question/26232566

5 0

2 years ago

The Action Toy Company has decided to manufacture a new train set, the production of which is broken into six steps. The demand

horsena [70]

Answer:

a. 32 secs

b. 3.75 or 4

Explanation:

The computation is shown below:

(a) Cycle Time is

= Operation time per week ÷ output per week

= (40 hours × 60 × 60) ÷ (4,500)

= 32 secs

(b) And, the Theoretical minimum number of workstations required is

= Sum of total task times ÷ cycle time

= (22 + 30 + 15 + 14 + 12 + 27) ÷ (32 sec)

= 3.75 or 4

By applying the above formulas we can get the cycle time and the theoretical minimum number of work stations

5 0

3 years ago

Preparing a Selling and Administrative Expenses Budget Fazel Company makes and sells paper products. In the coming year, Fazel e

Verdich [7]

Solution and Explanation:

The following is the selling and administrative expense structure of the Fazel company for the year. According to the given information and the data:

The Variable selling expenses (19730000* 3%) 591900

The Fixed Expenses

The Salaries expense 960000

The Utilities expense 365000

The Office space expense 230000

The Advertising expense 1200000

The Total Fixed expense 2755000

The Total selling & admin Expense 3346900

Note: the variable expense is calculated by multiplying the total sales given in the question with the percentage of the commission given

5 0

3 years ago

CMr. Garcia is listening to an investment planner talking about mutual funds; Garcia really believes in investing in such funds

ludmilkaskok [199]

Answer: False

Explanation:

Mr. Garcia should not accept the planner's ideas without critical evaluating the point the planner gave when he was discussing with him.

Mr Garcia should give his opinion on the issue raised by the planner and make inquiries so that the planner will give more detailed analysis regarding the investment.

The evidences gotten while discussing with him can be used to determine if the project is worth it or not.

4 0

3 years ago

Suppose that the Town of Mapledale is considering hiring an additional firefighter. The expected benefit is estimated to be wort

Radda [10]

Answer:

(B) Hire the firefighter if the cost of the new firefighter is less than $75,000.

Explanation:

The city should hire the Firefighter only if the cost of new firefighter is less than $75,000.

Since $5 x 15000 residents = $75, 000.

Therefore it is still beneficial to hire a new firefighter if the cost is less than $75, 000

5 0

3 years ago