Small changes in consumer demand can result in large variations in orders placed because of the Bullwhip Effect. Thus the correct answer is D.
<h3>What is a consumer?</h3>
The consumer is referred as an end user of any product or service. He is the person who utilizes or takes the benefit of the products purchased. The person who buys a product is called a customer.
Demand estimations result in ineffective supply chains due to the bullwhip effect which is a characteristic of distribution channels. As one moves higher up the supply chain, it informs of increasing inventory variations in reaction to variations in consumer demand.
Therefore, option D Bullwhip effect is appropriate.
Learn more about the Bullwhip effect, here:
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The complete question is attached below-
Small changes in consumer demand can result in large variations in orders placed because of the:
A) Supply chain
B) Safety stock requirement
C) Lead time effect
D) Bullwhip effect
E) FCFS scheduling
Answer:
NPV ($4,452)
Explanation:
The net present value of the investment made can be calculated as under:
NPV = (Annual Net Cash inflow * Annuity Factor at 9% for 3 years) - Initial investment
Here
Initial investment is $69,000
The depreciation is the non cash item which must be removed so the annual cash inflow would be:
Annual Net Cash inflow = $2,500 + $23,000 Non cash item = $25,500
The annuity factor at 9% for three years is given and is 2.5313
So putting above value in the equation, we have:
Net Present Value = ($25,500 * 2.5313) - $69,000
Net Present Value = $64,548 - $69,000
Net Present Value = ($4,452)
Answer:
The statement that is not correct is:
- <u><em>B) A purchase of equipment is classified as a cash outflow from investing activitites.</em></u>
Explanation:
<u><em>A) Paying dividends to investors creates a cash outflow from financing activities. </em></u>
This is correct.
The financing cash flow or cash flow generated by financing activities is the cash flow that involves transactions with the banks (only the long term debt) or stake holders: financing debt, equity, and dividend.
Issuing equity of debt is a cash inflow: increases the cash of the company.
Paying dividends, such as repurchasing debt or equity are cash outlfow: decreases the cash of the company.
<u><em>B) A purchase of equipment is classified as a cash outflow from investing activities.</em></u>
<u><em></em></u>
This is not correct.
The operating cash flow is the cash that involves the operations of the company: sales (revenue), trade receivables, operating investement in building and equipments used for the operation, purchases from suppliers (inventory).
When you purchase an equipment it diminishes the cash or impact an operating account; thus, a purchase of equipment is classified as a cash ouflow from operating activities, not from investing activities.
Answer:
No, it will be different. There will not be any depreciation recapture for an individual taxpayer if the recognized profit is under $1250 with respect to the straight-line depreciation method and the service after 1986. However, a depreciation recapture will be treated from the recognized profit for a C corporation for sales that is approximately $1250 or more.
Explanation:
There will not be any depreciation recapture for an individual taxpayer if the recognized profit is under $1250 with respect to the straight-line depreciation method and the service after 1986. However, a depreciation recapture will be treated from the recognized profit for a C corporation for sales that is approximately $1250 or more.
