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3 years ago

Low volume production has the following implication on the operations of an organisation.’ Choose the correct option:

Business

1 answer:

lesya [120]3 years ago

6 0

Answer:

(i) High unit costs

Explanation:

A low production volume results in high per-unit cost. The per-unit cost is derived by dividing the total cost by the total output. Total cost is a combination of variable costs and fixed costs. While fixed cost remains constant in the period, variable costs change with the production volume.

The fixed cost element is what makes a low volume production have a high per-unit cost. Since fixed costs are constant, a low quantity output means that a few units will share the fixed costs. The result is a high proportion of fixed costs per unit. The high per-unit fixed element cost makes a low volume output expensive compared to when the fixed costs are shared among many units.

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3 years ago

Suppose that actual inflation is 3 percent, the Fed's inflation target is 2 percentage points, and unemployment rate is 3 percen

Dahasolnce [82]

The government would set its targeted interest at 6.5%

Based on the Taylor's rule

R = π + A + 0.5(A-A*) + 0.5

This is the formula that helps to get the output gap

<u>Definition of terms</u>

R is the nominal federal funds rate

π is the real rate of federal funds = 2%

A is the rate of inflation

A* is the target of of inflation = 2%

Rate of unemployment = 3%

The government has a target of full employment that is at 4 percent.

When we enter the values into the formula

R = 2% + 3% + 0.5(3%-2%) + 0.5%(2%)

= 5% + 0.5% + 1%

= 6.5%

Therefore the government would set its targeted interest at 6.5%

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3 years ago

The marketing plan has three main components: the executive summary, the keys to success, and the implementation plan.

CaHeK987 [17]

Answer:

true

Explanation:

based on my opinion

7 0

3 years ago

An aging of a company's accounts receivable indicates that $8500 are estimated to be uncollectible. If Allowance for Doubtful Ac

Evgesh-ka [11]

Answer:

debit to Bad Debt Expense for $5800

Explanation:

Accounts receivable estimated as uncollectible = $8500

Allowance for Doubtful Accounts = $2700

Additional allowance for Doubtful debts required = $8500 - $2700

= $5800

The adjustment to record bad debts for the period will be

Debit Bad debt expense $5800

Credit Allowance for Doubtful Accounts $5800

The right option is debit to Bad Debt Expense for $5800

3 0

3 years ago

The Four Tops Company began operations on January 2nd. During the first 3 months of operations, only 3 jobs were worked on. Job

lianna [129]

Answer:

$81,500

Explanation:

As per the data given in the question,

The computation of the cost of goods manufactured is shown below:

Before that first we need to do following calculations

Direct material = $12,000 + $23,000

= $35,000

Direct labor = $11,000 + $20,000

= $31,000

Overhead applied = 50% of direct labor

= 50%×$31,000

= $15,500

Cost of goods manufactured = Direct material + Direct labor + Overhead applied

= $35,000 +$31,000 + $15,500

= $81,500

8 0

3 years ago