<span>Rational investors are averse to fluctuations in the value of their investments.</span>
Such employment would fall outside the production possibilities curve as the values plotted on that curve would be the minimum unemployment levels. The usual figure to use is % unemployment so most likely the differing levels shown would be for unemployment ie 10% above the curve and say 5 % on the curve.
Answer:
True
Explanation:
If lean production totally eliminates inventories, the net operating income computed under the absorption and variable costing methods should be equal. If lean production only reduces inventories, then the difference in net operating income under the two methods will be reduced.
Lean production is a system of production that tries to eliminate bottlenecks in the flow of goods by employing tools like just in time (JIT), Kaizen, and the 5S of Sort, Set in Order, Shine, Standardize, and Sustain, among others. It attempts to cut costs, reduce unnecessary inventory, shorten production cycle, speed response time, grant employees autonomy, and reduce waste of resources while ensuring high quality and customer satisfaction.
Lean production employs some principles in order to achieve efficiency. They are: 1) definition of value, 2) mapping the value stream, 3) creating efficient flow, 4) using a pull system, and 5) pursuing perfection in all aspect of production activities. The Lean approach can be applied to services and other aspect of business, like system, structure, and organization.
Answer and Explanation:
The computation is shown below:
1. For value-added for mother nature
It would be equivalent to the value of sales i.e. $2,750
2. For value-added for tlaloc
It would be
= $7,750 - $2,750
= $5,000
3. And, for value-added for Bob
It would be
= $20,000 - $7,750
= $12,250
The same is to be considered for all three
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