In comparison to other colonies, the middle colonies, and particularly the colony of Pennsylvania, were more tolerant of religious diversity.
The Middle Colonies of British North America, which included New York, New Jersey, Pennsylvania, and Delaware, ended up being the scene of the most challenging religious diversity in western history.
William Penn, an English gentleman and member of the Society of Friends, founded the colony of Pennsylvania in the early 1680s to offer a safe haven for his fellow Quakers. But because Penn held the view that "might breeds hypocrites; It is only persuasion that wins converts," he instituted a policy of religious tolerance that drew other persecuted faiths to Pennsylvania.
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as a strong leader, when you aim to achieve something and initially fail, what would you most likely do?
As a strong leader, you ought to provide a very thorough justification. Find a fresh approach to collaboration to complete the task. When you set out to do something, as a successful leader, you most likely find a new way to work with others.
Effective leaders must comprehend the motivations, emotions, and sentiments, particularly those who report to them. Since so many individuals are currently dealing with various difficulties, including worry, stress, adjusting to new work conditions, and income decline, empathizing with employees is essential.
A good leader demonstrates courage, passion, confidence, commitment, and ambition and offers direction, inspiration, and advice.
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Knowledge Check 01
Intercontinental, Incorporated, uses a perpetual inventory system, Consider the following information about its inventory; August 1,
rchased 10 units for $910 or $91 per unit; August 3, purchased 15 units for $1,590 or $106 per unit; August 14, sold 20 units; August
17, purchased 20 units for $2,300 or $115 per unit; August 28, purchased 10 units for $1,190 or $119 per unit; August 30, sold 23 units.
Using FIFO, the cost of goods sold for the sale of 23 units on August 30 is
and the inventory balance at August 30 is
The cost of good sold is $2,255
The ending inventory is $1,765
What is the cost of goods sold and ending inventory?
FIFO is an inventory system in which the first inventory that is purchased is the first that is assumed to be sold. Ending inventory is made up of goods that are purchased last.
The 23 units sold on August 30 would be taken from the inventory purchased on August 3 and 17. This is because the goods sold on August 14 would be taken from the inventory purchased on August 1 and 3.
Cost of good sold = (5 x $106) + (15 x $115)
$530 + $1,725 = $2,255
Ending inventory = (5 x $115) + $1190 = $1,765
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lillian applies for a job as the chief financial officer (cfo) of delco corporation. lillian is excited about the opportunity and feels that she has a pretty good chance of getting the position. just to make sure, lillian decides to explore the backgrounds of the decision-makers at delco. if lillian knows their interests, she thinks that might increase her chances of making a good impression in the final interview. the decision-makers who will decide whether or not lillian gets the cfo position at delco corporation include:
The decision-makers who will decide whether or not Lillian gets the cfo position at delco corporation include: the board of directors.
Who are the board of directors in a company?The board of directors is the term that is used to refer to the body that would be in the governing council of a company. The members of the board of directors are usually known to be chosen by those that are in the shareholders position in the company. They are those that have invested in the business.
They help to carry out different functions in the company. One of the functions that they help to carry out in the business is that they help to oversee the management of the business that is done in the company and they also carry out management services in the company.
Therefore the people that would have to carry out the function of having to decide on who is going to get the position would be the board of directors especially when they meet for a meeting.
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Complete question
Lillian applies for a job as the chief financial officer (CFO) of Delco Corporation. Lillian is excited about the opportunity and feels that she has a pretty good chance of getting the position. Just to make sure, Lillian decides to explore the backgrounds of the decision-makers at Delco. If Lillian knows their interests, she thinks that might increase her chances of making a good impression in the final interview. The decision-makers who will decide whether or not Lillian gets the CFO position at Delco Corporation include:
a. the shareholders of Delco Corporation.
b. the board of directors.
c. the chief executive officer, secretary, and treasurer of Delco Corporation.
nowledge Check 01
On November 1, the company rented space to another tenant. A check in the amount of $9,000, representing three months' rent in advance, was received from the tenant on that date. The payment was recorded with a credit to the Unearned Rent Revenue account.
Complete the necessary December 31 adjusting journal entry by selecting the account names from the pull-down menus and entering dollar amounts in the debit and credit columns.
Answer:
I would say in December 31
after meeting with the borrowers to complete a loan application, you return to your office and order a tri-merged credit report. now that you have a credit report, what loan disclosure must you now prepare and mail (or give) to them?
Notice to Home Loan Applicant
Can the borrower get a credit report?
The lender or broker is permitted by the Fair Credit Reporting Act to provide their client with a copy of the report they have obtained. However, if you decide to do so, you must be ready to explain the report to your customer and the information it contains.
Who is eligible for a loan is determined by lenders using what criteria?
To determine whether you are eligible for a personal loan, the majority of lenders look at your income, DTI ratio, credit score, and credit history.
What is included in a disclosure of a credit score?
In a nutshell, this is a disclosure that contains information such as the applicant's credit score, the range of possible scores, key factors that negatively impacted the credit score, the date of the score, and the name of the individual or organization that provided the score.
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In addition to value, what characteristics are being addressed in a vrio analysis?
The abbreviation VRIO stands for a four-question framework that considers value, rarity, imitability, and organization when assessing an organization's capabilities and resources. A four-pronged structure of an organization's resources analytical and sustainable success indicators is used in the VRIO analysis.
VRIO emphazises Value, Rarity, Imitability, and Organization as its four key objectives. These four areas serve as indicators of the distinctive worth and assets that make up your organization, and a review of their data can show you what the long-term benefits are for your firm. an internal analytical tool that businesses use to classify their resources according to whether they exhibit certain characteristics listed in the framework.
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A change in which of the following will not shift the demand curve for hamburger? a. the price of hot dog, b. the price of hamburger, c. the price of hamburger buns, d. the income of hamburger consumer
The option that will not shift the demand curve for hamburger is the price of hamburger.
What will not shift the demand curve for hamburger?
The demand curve is a curve that shows the relationship between the price of a good and the quantity demanded of the good. The demand curve slopes downward indicating a negative relationship between the price of a good and the quantity demanded of the good.
A change in the price of a good will lead to a movement along the demand curve for that good. Other factors would lead to a shift of the demand curve. The demand curve can either shift inward or outward.
Factors that would lead to a shift of the demand curve include:
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A sample of 39 observations is selected from a normal population. The sample mean is 19, and the population standard deviation is 4. Conduct the following test of hypothesis using the 0.10 significance level.
H0: μ ≤ 18
H1: μ > 18
a. Is this a one- or two-tailed test?
multiple choice 1
One-tailed test
Two-tailed test
b. What is the decision rule?
multiple choice 2
Reject H0 when z > 1.282
Reject H0 when z ≤ 1.282
c. What is the value of the test statistic? (Round your answer to 2 decimal places.)
e-1. What is the p-value? (Round your answer to 4 decimal places.)
e-2. Interpret the p-value? (Round your final answer to 2 decimal places.)
The test that we have here is a one tailed test. The decision rule is to Reject H0 when z > 1.282. the value of the test statistic is 1.56. The p value is 0.0594
How to solve the problema. The question that we have been asked to solve in the problem that we have here has been identified as a one tail test. The first option is correct
b. The decision rule that we are to abide by in the question is Reject H0 when z > 1.282. The first option is the answer here
c. How to solve for The z test statistic calculation
19 - 18 / 4 / √39
= 1.5612
e1. The p value that we have here is 0.059238. The p value was obtained through the use of a statistical software.
e2. The p value is less than 0.10. That is 0.059238 < 0.10 so we have to reject the null hypothesis.
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If the total income of people in the US increases,
1. Equilibrium price would increase & equilibrium quantity would decrease
2. Equilibrium price would decrease & equilibrium quantity would decrease
3. Equilibrium price would increase & equilibrium quantity would increase
4. Equilibrium price would be indeterminate & equilibrium quantity would decrease
Equilibrium price would increase and equilibrium quantity would increase
What is equilibrium price and quantity?
The equilibrium price, which is obtained when the quantity sought by consumers and the quantity supplied by producers, respectively, are equal, is the only price at which consumer and producer plans coincide. This common quantity is known as the equilibrium quantity.
A product is neither in short supply nor in excess when its quantity is in balance. When supply and demand cross, the amount of a good that consumers desire to buy is equal to the amount that its manufacturers are supplying.
To determine the quantity, enter the equilibrium price into the supply or demand function.
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Gary is opening a restaurant. Determine whether his costs are fixed or
variable. Use F for fixed and V for variable.
Takeaway boxes
Rent
Credit card bill
Ingredients
The cost will be:
Takeaway boxes - Variable cost
Rent - Fixed cost
Credit card bill - Variable cost
Ingredients - Variable cost
What are fixed cost?Fixed Costs are those costs that are immutable i.e they cannot be changed.
Variable Costs are those costs that change or vary with the rate of production. For example, if the production rate increases or decreases, they also increase or decrease. They are also known as a direct cost
Takeaway boxes - V This is because as production or demand increases takeaway boxes will also increase
Rent - F This is because whether production or demand increases or decreases, the rent remains the same
Credit card bill - V This is because as production or demand increases credit card bill will also increase
Ingredients - V This is because as production or demand increases demand will also increase
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estimating the fixed and variable components of a mixed cost using the ____ approach involves a detailed analysis of what cost behavior should be.
Estimating the fixed and variable components of a mixed cost using the variable per cost unit approach involves a detailed analysis of what cost behavior should be.
The scattergraph (or scatter graph) method is a visible approach utilized in accounting for separating the constant and variable components of a semi-variable rate (also known as a blended fee) which will estimate and finance future expenses.
A cost that modifications in share to modifications in extent of interest is called c) variable components. Variable fees are the ones tied without delay to production and rise and fall relying on what paintings a commercial enterprise does.
The high-low method computes the variable components fee by using dividing the change in the general expenses by the trade within the number of units of synthetic. In other words, the $4,800 change in overall charges is split via the change in units of three hundred to yield the variable price rate of $sixteen in line with the unit of product.
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Home Hardware reported beginning inventory of 30 shovels, for a total cost of $210. The company had the following transactions during the month:
January 2 Sold 8 shovels on account at a selling price of $8 per unit.
January 16 Sold 12 shovels on account at a selling price of $8 per unit.
January 18 Bought 4 shovels on account at a cost of $7 per unit.
January 19 Sold 12 shovels on account at a selling price of $8 per unit.
January 24 Bought 12 shovels on account at a cost of $7 per unit.
January 31 Counted inventory and determined that 10 units were on hand.
Prepare the journal entry:
At month end, counted inventory and determined that 10 units were on hand. Record the "book-to-physical" adjustment.
The journal entry to record the "book-to-physical" adjustment for Home Hardware is as follows:
Journal Entry:Debit Cost of goods sold $252
Credit Inventory $224
Credit Book-to-physical adjustment (inventory shortage) $28
What is the book-to-physical adjustment?The book-to-physical adjustment is the computed difference between the inventory amount in the general ledger and the dollar value of the physical inventory.
The difference arises from shortages due to either pilferage or unrecorded sales.
For instance, after purchasing 12 shovels on Jan. 24 without recording any sales thereafter, how come the inventory count yields 10 shovels only?
Jan. 1 Beginning inventory 30 $7 $210
Jan. 2 Sales -8 $8
Jan. 16 Sales -12 $8
Jan. 18 Purchases 4 $7 $28
Jan. 19 Sales -12 $18
Jan. 24 Purchases 12 $7 $84 $322
Jan. 31 Ending inventory 14
Inventory count 10
Shortage/Unrecorded sales 4
Cost of goods sold $252 (46 - 10 x $7)
The cost of goods sold (recorded) = $224 ($7 x 32)
Cost of ending inventory = $70 (10 x $7)
Book-to-physical adjustment = $28 ($7 x 4)
Analysis:Cost of goods sold $252
Inventory $224
Book-to-physical adjustment (shortage) $28
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what must a global marketer consider when developing a global advertising plan that addresses potentially competitive business objectives?
It's not simple to market internationally. Before entering the international market, it must research, develop, and produce various products. It must decide which marketing tactics to employ first.
Before anything else, a company or organization should consider its general and marketing goals and objectives. Without a marketing plan, a company lacks focus and will find it difficult to achieve its aims. A global marketing strategy (GMS), which aims to coordinate a company's marketing operations throughout these markets, includes many world geographical areas. GMS helps in the marketing of each and every company by providing them with assistance.
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The three basic situational leadership theories are
According to the notion, there are four basic leadership philosophies. High directing behaviors, low supporting behaviors in the directing (S1) domain. High on directing and encouraging behaviors when coaching (S2). Supporting (S3): High levels of supporting behaviors and low levels of directing behaviors theories.
According to Blanchard and Hersey, situational leadership entails "selecting the correct leadership behaviors style for the right individuals." Additionally, it depends on the age and competency of the followers. Leaders theories today appear more like partners than bosses for the first time in history. Depending on who you're managing and when, you might use one of four different leadership philosophies.
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The North American Free Trade Agreement (NAFTA) is a trade agreement between the United States, Canada, and Mexico that took effect in 1994. It eliminated many tariffs and restrictions to allow free trade among these countries.
Discuss the positive and negative effects of the North American Free Trade Agreement on the United States. Support your conclusions with examples and evidence from the lesson.
The positive effects that Nafta had was that it
increased trade It brought better prices for goodsIncreased foreign investmentLed to raised output in the nationsThe negative effects of NAFTA were:
Mexico lost in the forms of farm jobsNations had to export the farm products below their exported costsWhat is NAFTA?This is the term that is used to refer to the North American free trade agreement that helped to establish free trade in the region between the member nations.
This helped in the removal of tariffs from all that had to do with trade in the North American region.
The positives were that it helped to bring about more economic opportunities for the members involved. They could trade more and better with themselves.
The negatives is from the fact that the exports that were made in some cases were a loss to the people that would export these products in the market at the time.
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the rational model of decision making is considered ______ in that it describes how managers should make decisions rather than how they actually make them.
Since the rational model of decision-making prescribes how managers should make decisions rather than how they really do, it is regarded as prescriptive.
Since the Instead of offering advice or summarizing what is done, a prescriptive approach entails telling individuals what they should do. rational model of decision-making outlines how rational model managers should make decisions rather than how they actually do, prescriptive it is seen as normative.
Instead than focusing on how managers actually make prescriptive decisions, a normative decision-making approach defines how they should make decisions and offers guidelines for achieving the best possible outcome for the organization.
A descriptive approach, however, focuses on how managers prescriptive actually make decisions as opposed to how they rational model should make decisions in accordance with a theoretical ideal.
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wheat is produced in a perfectly competitive market. if market demand increases, the individual wheat farmer's marginal revenue will and his profit-maximizing rate of output will . increase; increase increase; decrease decrease; increase decrease; decrease increase; remain unchanged
In a case whereby wheat is produced in a perfectly competitive market if market demand increases, the individual wheat farmer's marginal revenue will and his profit-maximizing rate of output will increase.
What is perfectly competitive market?Perfect competition can be described as the kind of competition that do take pace a s a result of how the companies sell identical products.
It should be noted that in this market, the companies can exit at any time they want and in this market the share does not influence price in the market because there are alot of the firms there.
Therefore option A is correct.
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As wheat is produced in a perfectly competitive market, if market demand increases, the individual wheat farmer's marginal revenue will and his profit-maximizing rate of output will increase.
What is a perfectly competitive market?Perfect market competition refers to the type of market structure where all producers and consumers have proper and symmetric information about the market and product.
Perfect market competition has the features of a large number of buyers, a large number of sellers and all products are homogeneous.
Basically, the perfect competitive market occurs when all the companies sell identical or homogeneous products.
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What basic function requires a manager to hire employees and coordinate the work of subordinates
The basic function that requires a manager to hire employees and coordinate the work of subordinates is referred to as the organizing function
This is further explained below.
What is an organizing function?Generally, Delegating power to subordinates and setting up channels of communication are both components of the organizational function of the management process.
In conclusion, The duty of organizing encompasses other activities as well, such as the creation of departments and the coordination of the work of subordinates.
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a company that develops a new merchandise tracking technology that automatically notifies suppliers when a new shipment is needed is using its new product to:
Though it varies depending on the business, the product development process can be roughly divided into seven stages: ideation, research, planning, prototype, sourcing, costing, and commercialization.
What does product tracking technology entail?Innovators are those who adopt new ideas or technologies merely because they are novel. Innovators are the most daring and are more willing to take chances. Early adopters: This group has a propensity to form opinions that drive trends.
Poor product-market fit, unmet client needs, or fierce competition are just a few causes for why new products can fail.
In order to create a new product, entrepreneurs must first determine the problems that their target market faces.
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the cost of data storage has plummeted recently, making data mining feasible for more firms.
a. True
b. False
It is true that the cost of data storage has plummeted recently, making data mining feasible for more firms.
What is data storage?Data storage can be described as the one of the essential part of data management in the organization because management of the data of the firm as well as the data of the client of the organization is very important since any loss as as well as theft of data can be dangerous for the comp[any or the organization.
It should be noted that most of the firm do spend some of their money on the data management especially the telecommunication as well as the IT industries, since the data of their client is very prominent to them as well as their own data.
In conclusion , with the reduction in the cost of the data processing this has encourage so many firms to be able to manage their data very well and ability to handle their data very well.
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A firm produces output according to the production function Q = 4K + 8L where K is capital and L is labour.
If the wage rate is €60 and the cost of capital is €20, how many units of labour should the firm hire if it wants to produce 16 units of output?
The units of labour that the firm should hire if it wants to produce 16 units of output is 2 units.
What will be the number of unit?The production function is Q = 4K + 8L where
K = capital
L = labour
For Q = 16
16 = 4K + 8L
According to the given production function K and L are substitutes so for producing 16 units
MRS = w/r
MRS = MPL/MPK
= 8/4
= 2
We will divide the wage rate by cost of capital and this will be:
= Wage rate / Cost of capital
= 60/20 = 3
As W/r is more than MRS so the firm only uses capital and zero labor to produce.
So for 16 units of capital
16 = 4K + 8L
where K = 0
Substitute k = 0 into the equation
16 = 4K + 8L
16 = 4(0) + 8L
16 = 8L
Divide
L = 16/8 = 2
The units is 2 units.
This illustrates the unit of labor.
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10. NIMS Components are adaptable to planned events such as sporting events.
OA. TRUE
OB. FALSE
NIMS Components are adaptable to planned events such as sporting events. This, statement is true. Thus, option (a) is correct.
This means that the National Incident Management System (NIMS) features can be implemented to planned events, including athletic events, to guarantee effective incident management and response.
The National Incident Management System (NIMS) Training Programme serves to reduce risk by increasing readiness. The training programme supports the training and qualification of emergency management employees in NIMS ideas and principles.
As a result, the significance of the statement is true are the aforementioned. Therefore, option (a) is correct.
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Bree's Bait Shop is a successful store that specializes in highly effective fishing tackle. Bree has employed a high-tech computer
tracking system that allows her to separate her customers into two different groups of consumers with a differing willingness to
pay. Bree is interested in increasing her profits through price discrimination and approaches your marketing firm for advice.
Assuming her demand curve is downward sloping, you tell her there is one more crucial piece of information you must have in
order to advise her.
What do you ask Bree?
Are you currently producing where P = ATC?
What are your total costs?
What is your current price?
O Are you able to prevent the resale of your tackle?
Option (d) is the best choice. We ask Bree: Are you able to stop your tackle from being sold again?
What is pricing discrimination, and how does it help monopolies make more money?By maximizing total income, price discrimination often increases the monopoly firm's profit. Instead of setting a flat rate for all clients, a monopolist charges some customers additional prices. Price discrimination among clients with diverse needs helps reduce the danger of establishing a uniformly high price.
How can pricing discrimination boost revenue?An organization can sell at a significantly higher production thanks to price discrimination. It is therefore using its earlier spare capacity. This enables the company to use its manufacturing factors more effectively. Because of the higher output, the company is able to cut its long-term average costs and raise profits even more.
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List the steps of the rational model of decision making in the correct order, with the first step listed at the top and the last step listed at the bottom.
The steps of the rational model of decision-making are in the correct order, with the first step listed at the top and the last step listed at the bottom.
Step 1: become aware of the problem
Step 2: set up decision standards
Step three: Weigh decision standards.
Step 4: Generate alternatives.
Step 5: compare options.
Step 6: Choose a great alternative.
The rational model of choice-making is a model where individuals use data and data, analysis, and a step-by using-step method to determine. The rational version of the decision.
The rational model of selection-making includes reasoning, statistics, and records. In contrast, intuitive choice-making includes deciding on amongst options without relying on reasoning or evaluation. It entails unconsciously recalling a reminiscence or counting on feelings to make selections.
The rational goal approach specializes in the agency's ability to gain its desires. An organization's dreams are recognized by way of establishing the overall goal, discovering means or goals for its accomplishment, and defining a set of sports for each goal.
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a cpa and enrolled agents both offer tax services including return preparation while a(n) ______ will represent you in the case of an irs lawsuit.
Answer:
Attorney
Explanation:
A CPA and enrolled agents both offer tax services including return preparation while an attorney will represent you in the case of an IRS lawsuit. Thus, "attorney" is the correct filler.
Who is an attorney?An attorney is a person with legal training and education as well as courtroom experience. An attorney is, in essence, a person who represents a client in a court of law. The word "attorney" has French roots and comes from a verb that means to represent someone else. An attorney is a shortened version of the official title "attorney at law."
The differences in the functions and responsibilities of the two professions are crucial to comprehend, much like the discrepancy between the definitions of lawyer and attorney. As previously said, both have formal legal education and training, but a fundamental distinction between an attorney and a lawyer is frequently how one uses their knowledge and expertise.
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When it comes to setting one's own quality standards, one must ensure they are ___?
.profitable
.written
.measurable
.reviewed
When it comes to setting one's own quality standards, one must ensure they are measurable. The correct option is C.
Define the Actual Requirements. Learn how to satisfy quality management compliance more easily. Maintain Simplicity. Everything should be documented. Check for comprehension. Establish Key Performance Indicators (KPIs) Results should be measured.
What set your quality standards?
Quality management standards are particular rules, specifications, guidelines, and characteristics that products, services, and processes must follow on a consistent basis to guarantee that their quality meets expectations. They are suitable for their intended use.
Quality standards are documents that contain rules, specifications, guidelines, or characteristics that can be utilized regularly to guarantee that materials, products, processes, and services are fit for purpose.
Thus, the ideal selection is option C.
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Answer:
C- Measurable
Explanation:
This was the correct anser on my test
Which of the following is not a systematic process of controlling?
Select one:
A.
Establishing standards and methods of measuring performance.
B.
Measuring both quantity and quality
C.
Measuring performance
D.
Determining whether performance matches the standards
Measuring both quantity and quality (option B) is not a systematic process of control.
What is controlling?Controlling is described as a process in management, and it is a vital management function. It is important to mention that in the lack of any control process, management will fail to work properly. The management will fail to formulate a plan and work and will be unable to according to the implemented plan.
Measuring just the quantity and the quality, the performance measurement is overlooked. It is the main objective of control is to work as per plan and the level of performance must be by the formulated plan. However, measuring only the quality and quantity will not lead to a systematic process of control.
It can be concluded that measuring both quantity and quality (option B) is not a systematic process of control.
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suppose an economy can produce a maximum of 10 units of good x and the opportunity cost of 1x is always 2y. what is the maximum number of units of good y the economy can produce?
The value of the next-best option when a choice is made is known as the opportunity cost, according to Andrea Caceres-Santamaria, senior economic education specialist at the St.
What changes as the output of good X grows in terms of the opportunity cost?The law of rising opportunity cost is covered in lesson five. The opportunity cost to producing the additional good will rise as you increase production of one good. First, keep in mind that opportunity cost, or what is given up when a decision is taken, is the worth of the next-best alternative.Applying the following formula, opportunity cost is determined as follows: Opportunity Cost is calculated as Return on the Most Profitable Investment - Return on Investment Pursued.Opportunity cost can be used in almost any business decision or financial decision-making process. Business owners and other stakeholders can assess the most valuable and lucrative choice as well as the return of a foregone alternative by using opportunity cost estimates.To Learn more About opportunity cost refer to:
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What are the basic functional areas of an organization? In an organization, which functional area does not have any direct communication with customers?
Generally speaking, strategy, marketing, finances, human resources, technology and equipment, and operations make up the six functional areas of business management. Customer relationship management (CRM), problem solving, and support are often the purview of customer service.
The lifeblood of manufacturing companies is the functional area of research and development, to sum up. Information management is not a management functional area. Management encompasses a variety of tasks, including those related to production, marketing, and human resources. Teams of employees in functional domains have similar Customer knowledge and abilities. A business's sales department, for instance, is a typical functional area where employees are all concerned with promoting the company's goods.
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a company sold 20,000 units of its product for $20 each. variable cost per unit is $11. fixed expenses total $150,000. the company's contribution margin is ______.
A company sold 20,000 units of its product for $20 each. variable cost per unit is $11. fixed expenses total $150,000. the company's contribution margin is $180,000
The contribution margin can be stated on a gross or per-unit basis. It represents the incremental money generated for each product/unit sold after deducting the variable portion of the firm's costs. The difference between a product's sale price and the variable costs related to its manufacture and sale is calculated as the contribution margin. The following formula is used to express this:
C= R-V
Contribution margin = 20,000 x ($20-$11)
= $180,000
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