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2 years ago

What is sub-optimization and what organizational characteristics tend to lead to larger sub-optimization problems?

1 answer:

7 0

An organizational characteristics that tend to lead to larger sub-optimization problems is continuous focus on optimizing a unit of a business rather than the results of the entire business

<h3>What is Sub-optimization?</h3>

In a firm. the term "Sub-optimization" occurs when there is reduced level of output as a result of an an inefficient or ineffective process or system.

The problem associated with Sub-optimization is that when there is an optimization of outcome for a subsystem, it may not generally optimize the outcome for the system as a whole.

In conclusion, the organizational characteristics that tend to lead to larger sub-optimization problems is continuous focus on optimizing a unit of a business rather than the results of the entire business

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Ue or false: increasing the number of stocks in a portfolio reduces market risk.

Triss [41]

False. It does not reduce market risk.

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4 years ago

Nile Corp. has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:

True [87]

Answer:

Overheads cost allocated to Mossman Job = $449

Explanation:

We have been provided the cost of each activity and their respective drivers.

There are three activities

Supervision of Direct Labor = $304,000 for 760,000 labor hours

Machine Maintenance = $153,600 for 960,000 hours

Facility rent = $165,000 for 110,000 square feet

Activities of Mossman Job and respective costs will be as follows:

Supervision of Direct Labor = $304,000/760,000 X 260 labor hours = $104

Machine Maintenance = $153,600/960,000 X 1,500 = $240

Facility Rent = $165,000/110,000 X 70 = $105

Net Overheads cost allocated to Mossman Job = $104 + $240 + $105 = $449

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3 years ago

If a stock with a beta of 1.4 is expected to return 18% when Treasury bills yield 6%, what is the expected return on the market

ahrayia [7]

Answer:

14.57%

Explanation:

A stock has a beta of 1.4

The expected return is 18%

The risk free rate is 6%

Therefore, the expected return on the market portfolio can be calculated as follows

18%= 6% + 1.4(market return-6%)

18%= 6% + 1.4market return - 8.4

18%= 6-8.4 + 1.4market return

18%= -2.4% + 1.4market return

18%+2.4%= 1.4market return

20.4= 1.4market return

market return= 20.4/1.4

= 14.57%

Hence the expected return on the market portfolio is 14.57%

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3 years ago

Who is responsible for training food workers on safe food handling procedures?

notsponge [240]

Answer:

supervisor, owner or manager

Explanation:

It is always the supervisor, owner or manager's duty to train an employee working in the food industry about the handling procedures and compliance with health policies.

Taking into consideration the specifics of each food industry (various countries and standards), the person in charge should handle proper training or provide adequate courses which teach the employees how to handle food and ensure that the health or food hygiene factors are respected.

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3 years ago

Charging high prices to earn large profits during a time when there is little competitionrepresents a ________ strategy:________

Usimov [2.4K]

Answer:

Skimming

Explanation:

Price skimming, also known as skim pricing, is a pricing strategy used by those who face little or no competion, what normally happens is that a firm charges a high price and then gradually may need to lowes the price to attract more customers.

Price skimming is used to earn large profits especiallyn when a new product or service is introduced into the market. The pricing strategy is largely useful iwhen the firm is the first to enter the marketplace. The aim of this is to generate the large profit in the shortest time possible.

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3 years ago

Read 2 more answers