Answer: True
Explanation:
The quality improvement teams are groups of employees that are from various departments who come together and meet regularly in order to define, analyze, and then solve common production problems.
The aim of the quality improvement team is to improve the production process. This is achievable by them working on their methods.
Im pretty sure its 2) Fixtures
Sorry if its wrong
Answer:
a)
1. Explicit cost
2. Implicit Cost
3. Implicit Cost
4. Explicit cost
b)
Accounting Profit is $62000.
Economic Profit is -$3000. (a loss of $3000)
Explanation:
a)
Explicit costs are those costs incurred by a business that require an outlay of money as a result of operating a business.
Implicit costs, on the other hand, are the costs that do not require an outlay of money as a result of operating a business. They are instead the opportunity costs of operating a business or the benefits that are foregone.
1. The wages and utility bills are a result of operating a business and requires and outlay of money as their payment. They are <u>explicit costs.</u>
2. The rental income could have been earned if Larry rented the showroom he is using to operate his business from. The rent foregone is an opportunity cost and is an <u>implicit cost.</u>
3. The salary Larry could have earned is also something that Brian has to forego to operate his business and is an <u>implicit cost.</u>
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4. The cost of purchases paid to manufacturer requires outlay of money and is an <u>explicit cost.</u>
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b)
Accounting profit = Total Revenue - Total explicit cost
Economic profit = Total revenue - (Total Explicit Cost + Total Implicit Cost)
Accounting Profit = 793000 - 430000 - 301000 = $62000 profit
Economic profit = 793000 - (430000 + 301000 + 15000 + 50000) = -$3000 loss
Answer:
CPI in 2020 =142.7
CPI in 2019 = 100
Inflation rate = 42.7%
Explanation:
Inflation is the increase in the general price level. Inflation erodes the value of money.
Consumer Price Index(CPI ): This is the weighted average price of a basket of goods and services consumed by a typical consumer. It is used to measure the rate of inflation.
The increase in the CPI is taken to be the rate of inflation. For example, the CPI rose to 1.09 from 1.00, this implies an inflation rate of 9% within the time period in focus.
The CPI =
The price of a basket of goods in a current year ÷ Divided by the price of a basket of goods in a base year
The consumer price
Value of basket of goods in 2019 = (1000× $2) + (100× $50) + ( 500× $0.10)= 7050
Value of basket of goods in 2020= (1000× $2.50) + (100× $75) + ( 500× $$0.12)=10,060
CPI in 2020 = 10,060/7050× 100 =142.7
CPI in 2019 = 100
CPI in 2020 =142.7
CPI in 2019 = 100
The inflation rate =(142.7/100-1 ) × 100 = 42.7%
Note , we assume the CPI for 2019 is 100, since we were not provided with data to compute the price of a basket of good in 2018
CPI in 2020 =142.7
CPI in 2019 = 100
Inflation rate = 42.7%
