Question:
A potato chip manufacturer purchases a potato farm. Which of the following regarding its strategy is true?
A. The manufacturer has effectively used vertical integration to increase its bargaining position and reduce transaction costs.
B. The manufacturer has enhanced utilisation by allowing depreciation and other fixed costs to be spread over a larger unit volume.
C. The manufacturer has sacrificed quality by using a lower-cost input.
D. The manufacturer has efficiently capitalised on the experience and learning-curve effects within the company.
E. The manufacturer has effectively reduced its operating costs by outsourcing its activities.
Answer:
A. the Manufacturer has effectively used vertical integration to increase it's bargaining position and reduce transaction costs.
Explanation:
Vertical integration is a business strategy whereby a business acquires ownership or controls its suppliers, distributors, or retail locations to control its value or supply chain.
It may also be said that vertical integration has to do with the purchase of a part of all of the production or sales process that was previously outsourced, to have it done in-house.
An example of companies who have done this are:
1. Apple
2. Netflix
3. Comcast (Which acquired NBC)
Businesses can integrate by
- purchasing their suppliers to reduce the costs of manufacturing or
- controlling the distribution process that is, owning and controlling the warehousing and delivery of their products etc.
Answer:
1. $590
2. $9.83
Explanation:
1.
Total Number of Direct Labor Hours:
= Total Labor Cost ÷ Labor Rate Per Hour
= 150 ÷ 15
= 10 Hours
Total Overheads:
= Total Number of Direct Labor Hours*Predetermined Overhead Rate
= 10 × 21
= 210
Total Manufacturing Cost = 230 + 150 + 210
= $590
2.
Average Cost:
= Total Manufacturing Cost ÷ Number of Units
= 590 ÷ 60
= $9.83
Answer:
Ken owns a food services company and recently negotiated a contract with a new restaurant chain. the satisfaction ken feels for this success is a(n)<u> intrinsic motivator.</u>
Explanation:
Intrinsic motivation can be defined as a kind of positivity in a person which he/she feels by doing any work of their choice. The person is satisfied internally with the work he or she chooses to do. In intrinsic motivation, the person is motivated to do a work that will satisfy himself/herself rather than satisfying any external source.
For example: In the above question, Ken is satisfied because she runs a food service company to make herself happy and she negotiated a contract because she cares to do anything that makes her satisfied rather than any other person.
Answer:
C.
Explanation:
The individual that acts as the principal Federal official for domestic incident management is referred to as the Secretary of Homeland Security. The individual in this role is responsible for overseeing the proper functioning of the Department of Homeland security which deals with counter-terrorism, cyber-security, aviation security, and border security among other things. Today the individual in this position is Chad Wolf.
Answer:
The correct answer is letter "B": Integrated Program Management Report (IPMR).
Explanation:
The Integrated Program Management Report (<em>IPMR</em>) is a legally authorized report containing performance details extracted from the internal Earned Value Management System of the contractor. The IPMR provides an extract on the advance of the agreement including potential problems, costs, and change in schedules.
