Answer:
The correct answer is (E)
Explanation:
There are two major policies which can directly affect the economy of a country; fiscal policy and monetary policy. Monetary policy is generally controlled by federal or state bank which is used to increase or decrease the overall money supply in the economy. Some important tools of monetary policy are interest rate, discount rate and open market operations etc. The monetary policy is often used to target inflation
Interest rate risk
Interest rate risk is the risk that arises for fixed-rate investments from fluctuating interest rates. How much interest rate risk a fixed-rate investment has depends on how sensitive its price is to interest rate changes in the market.
Answer:
The best way for Professor Fader to pick the Salesperson of the Month is to measure the change in <u>total customer lifetime value</u> for that month delivered and give the award to the salesperson with the highest points.
Explanation:
Total Customer Lifetime Value (CLV) refers to the total value delivered by a customer over a particular period not just in the number of purchases they have made. A customer's value also includes, but is not limited to:
The formula for calculating CLV is by:
(Annual Customer Revenue X Lenth of Relationship in Years) - (Total costs of acquiring plus Total Cost of Serving the customer)
or
(ACR x LR)-(TCA+TCS) = CLV
Cheers!
Answer:
option (b) $900 U
Explanation:
Data provided in the question:
Normal capacity = 4,000 units per month
Budgeted fixed overhead = $16,000
Budgeted Variable factory overhead = $20,000
Actual overhead incurred = $37,900
Now,
Budgeted variable factory overhead cost per unit = $20,000 ÷ 4,000
= $5
Flexible budget variable factory overhead = 4,200 × $5
= $21,000
Total Variable budgeted factory overhead = $21,000 + $16,000
= $37,000
Variance = Budgeted overhead - Actual overhead
= $37,000 - $37,900
= - $900
or
$900 Unfavourable
Hence, option (b) $900 U