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4 years ago

11

Moral hazard and adverse selection have different timing with respect to the purchase of insurance. in other words, one is of in

terest before the purchase of insurance and one occurs after the purchase. explain.

1 answer:

tatuchka [14]4 years ago

7 0

Y buy a thing if u brake it it will be replaced by money that is what insurance is

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Bonita Industries prepared a fixed budget of 75000 direct labor hours, with estimated overhead costs of $375000 for variable ove

Zinaida [17]

Answer: $425,000

Explanation: The total overhead cost can be computed suing following formula :-

total overhead cost = fixed overhead cost + variable overhead cost

where,

fixed overhead cost = $90,000

$variable\:overhead\:cost=\frac{\$375,000}{75,000\:hours}\times 67,000\:hours$

=$335,000

so,putting the values into equation we get :-

total overhead cost = $90,000 + $335,000

= $425,000

6 0

3 years ago

Write down the factors on which supply flexibility is based.

Fed [463]

Now the supply chain flexibility is based make to order strategy, low volumes, low switching costs and low stocks.

3 0

3 years ago

Pun Corporation concluded the fair value of Slender Company was $60,000 and paid that amount to acquire its net assets. Slender

Lady_Fox [76]

Answer:

Investment on Slender 51,000

Goodwill 9,000

fees expense 4,000

Cash 64,000

Explanation:

fair value of Slender:

71,000 - 20,000 = 51,000

purchase price 60,000

goodwil 9,000

finder's fees 4,000

It will recognize the goodwill for Slender

it will pay the finder's and recognize them as expense

The total cash will be 60,000 to aquire Slender and the 4,000 finder's expense

3 0

3 years ago

ABC Company’s budgeted sales for June, July, and August are 15,600, 19,600, and 17,600 units, respectively. ABC requires 30% of

sleet_krkn [62]

Answer:

Raw material purchase budget for June 64,650 pounds

Explanation:

<em>Production budget for June = Sales budget + closing inventory- + Opening inventory </em>

<em>Closing inventory of products for June</em>

-30%× July budgeted sales= 30% ×19,600

=5,880

July production production budget

t= 19600 + (30%× 17,600)- 5,880

=19600 + 5280 - 5880 =19,000 units

<em>July usage budget for raw material</em>

<em>Usage budget = production budget × standard material per unit</em>

= 19,000× 3 pounds =57,000 pounds

<em>Production budget for June</em> = 15600 + 5,880 -4,680

= 16,800 units

Material usage budget = 16,800×3 pounds = 50400 pounds

<em>Material purchase = Usage budget + closing inventory of material - opening invento</em>ry

= 50,400 + (25%× 57000) - 0 =

=50,400 + 14250 =64,650 pounds

4 0

4 years ago

A credit card company advertises an APR of 15.3%, compounded daily. What

Art [367]

Answer:

B. 16.53%

Explanation:

The effective interest rate is the real interest rate charged by a bank or any other type of lender on a loan.

the formula to calculate effective interest rate = r = (1 + i/n)ⁿ - 1

i =15.3%
n = 365 days

r = [1 + (15.3%/365)³⁶⁵] -1 = 1.00419178³⁶⁵ - 1 = 1.165287621 - 1 = 0.165287621 ≈ 16.53%

7 0

4 years ago