Answer:
The time value of money is used to determine the fair value of the transaction ( B )
Explanation:
If a contract involves a significant financing component the time value of money is used to determine the fair value of the transaction and this is because the time value of money states that the money at hand ( available money ) is worth more than the identical sum of money in the future due to the earning capacity of the money.
therefore a contract involving a significant financing component ( present monetary component ) would have its fair value determined by the time value of money
Answer:
However, Gilberto's decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday, Gilberto lets them know how many workers he needs for each day of the week. In the short run, these workers are <u>VARIABLE</u> inputs, and the ovens <u>FIXED</u> inputs.
Explanation:
In the long run, all inputs are variable. E.g. in 5 years Gilberto might build his own pizza place and he will be able to make the kitchen as large as he wants.
But in the short run, some inputs are variable because they can be changed immediately, e.g. the number of workers changes on a weekly basis. While other inputs are fixed, and cannot be changed, e.g. Gilberto has a two yer lease contract for the ovens, so he will continue to use these ovens until the lease expires (in 2 years).
The long run and short doesn't depend on time, but on the ability of being able to change the inputs consumed by a business. The long run might represent 10 years for a company that signed a 10 year lease contract.
B. false
A one brand name strategy would be like McDonalds, Call everything the McRib, McDouble, it makes it nationlized, not localized
Answer:
Cost-plus-fixed-fee pricing
Explanation:
Cost-plus-fixed-fee pricing is when the contractor specifies the expenses of a project and a fixed fee for the services that provides which allows the contractor to earn a profit. In this type of pricing, the overall cost of the project is determined at the end and all the authorized costs are paid to the contractor in full. According to this, the answer is that these contractors use cost-plus-fixed-fee pricing to compensate them for any cost overruns.
