Cigarettes in Australia have long been subject to excise tax – a per cigarette tax levied on the suppliers of cigarettes. (The tax applies to all tobacco products, however for the purposes of this exam assume cigarette and tobacco consumption are the same thing). In 2016 the federal government announced that the excise tax rate for cigarettes would rise by 12.5% a year for the next 4 years. Over this period tax revenue collected from the sale of cigarettes has increased considerably. Legal cigarette consumption has fallen to an all-time low in Australia due to a combination of the tax on cigarettes, and public health initiatives such as plain packaging, health warnings and banning advertisements.
Consider the following two policies aimed at reducing cigarette smoking:
i. A tax on the suppliers of cigarettes, and
ii. The public health campaign initiatives.
(a) Illustrate the implications of both policies separately using a fully labelled and explained demand and supply diagram for each of parts (i) and (ii). Do not use actual numbers; this is intended as a theoretical exercise.
(b) Compare and contrast the impact on equilibrium price and quantity of cigarettes of each of these policies, explaining your answer with reference to the diagrams.
(c) Now assume that the federal government implements both policies at the same time. Consider the impact of both policies on government revenue. Explain your answer with appropriate diagrams and indicate the area on the diagram/s that represents government revenue. What are the key assumptions you have made in analysing government revenue?
Answers
(i) Tax on suppliers of cigarettes: The tax increases the cost of production for suppliers, leading to a higher price and lower quantity of cigarettes consumed.
(ii) Public health campaign initiatives: The initiatives decrease consumer demand for cigarettes, resulting in a lower price and lower quantity of cigarettes consumed.
(a) Illustration of the Implications of Policies on Cigarette Smoking:
(i) Tax on the suppliers of cigarettes:
A tax on the suppliers of cigarettes shifts the supply curve upward, as the tax increases the cost of production for cigarette suppliers. The diagram will show the initial supply curve (S1) shifting to a new supply curve (S2). The extent of the shift depends on the magnitude of the tax.
Demand remains relatively unchanged, as the demand for cigarettes is relatively inelastic due to addictive properties. Thus, the demand curve (D) remains the same.
The new equilibrium point (E2) occurs at a higher price and a lower quantity of cigarettes compared to the initial equilibrium (E1). The tax causes the price paid by consumers to increase, reducing their purchasing power. As a result, the quantity demanded decreases, leading to a decrease in legal cigarette consumption.
(ii) Public health campaign initiatives:
Public health campaign initiatives, such as plain packaging, health warnings, and advertising bans, aim to decrease the demand for cigarettes by influencing consumer behavior. The demand curve (D) shifts to the left due to reduced consumer desire and increased awareness of health risks.
Supply remains relatively unchanged, as the initiatives do not directly affect the cost of production or supply-side factors.
The new equilibrium point (E2) occurs at a lower price and a lower quantity of cigarettes compared to the initial equilibrium (E1). The decrease in demand leads to a reduction in legal cigarette consumption.
In both cases, the combined impact of the policies leads to a decrease in legal cigarette consumption. The tax on suppliers directly affects the price paid by consumers, while the public health initiatives affect consumer behavior and preferences.
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Related Questions
Lexi was on target in terms of her financial plan when her basement flooded due to an intense rainfall. Which type of financial risk derailed Lexi’s plans?
A. income risk
B. interest rate risk
C. personal risk
D. inflation risk
Answers
Answer:
C, "Personal risk"
Explanation:
Gradpoint
please help me quick :( (sorry meant to put chem not business)
Answers
When a county realizes a deficit on its current account:a) It becomes a net supplier of funds to other countriesb) It becomes a net demander of funds from other countriesc) It realizes an excess of imports over exports on goods and servicesd) Its net foreign investment position becomes positive
Answers
When a country realizes a deficit in its current account, it becomes a net demander of funds from other countries.
Hence, the answer is B.
What is the Effect of a Deficit on a Country's Current Account?This means that the country is importing more goods and services than it is exporting, leading to a deficit in its current account. As a result, the country needs to borrow funds from other countries to finance its imports.
This makes the country a net demander of funds from other countries. Therefore, the correct answer is option b) It becomes a net demander of funds from other countries.
However, a country's current account is a record that shows the country's transactions with other countries.
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Which statements would MOST likely be recommended by a monopolist?
A) You should produce the quantity where marginal cost is equal to the market demand and sell it for the fair return's price.
B) You should produce the quantity and offer it for sale at the price set by the demand and supply established by the industry.
C) You should produce the quantity where marginal revenue equals marginal cost and sell it for the price demanded in the market.
D) If possible, you should try to segregate the market and utilize price discrimination in order to increase your producer surplus.
E) You should produce the quantity where your average total cost equals the market demand and sell it for the price where marginal cost equals marginal revenue.
Answers
The statement that would most likely be recommended by a monopolist is E. You should produce the quantity where your average total cost equals the market demand and sell it for the price where marginal cost equals marginal revenue.
A monopolist simply means the only producer in the market. Such a person is the sole producer and therefore fixes a high price since there's no competition and it ensures that more profit is made.
It should be noted that a monopolist will produce the quantity where the average total cost equals the market demand and sell it for the price where marginal cost equals marginal revenue. Here, the price is set above marginal cost, and therefore, the firm earns a positive economic profit.
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Answer: C D
Explanation: USATest Prep 2022
During a group session, the only Persian member and another member ended up in a heated debate about cultural differences. The leader, also Persian, was caught off guard and unsure of how to address the situation in the moment, struggling with an internal conflict. What was the leader’s fear?A) Connecting with the Persian member.
B) Overidentifying with the non-Persian member.
C) Connecting with the non-Persian member.
D) Overidentifying with the Persian member.
Answers
Answer: D. Overidentifying with the Persian member.
Explanation:
The leaders fear in this case is over identifying with the Persian member. Since the leader is Persian, he is afraid that he could overidentify with the Persian member and this could bring about biasness with the way he handles the issue.
Therefore, based on the given options, the correct answer is D.
marcia strongly believes that loyalty in a relationship is very important. at her job, she is a purchasing agent. what two sets of ethical standards are in conflict for marcia
Answers
Answer: “Personal and organized” is the answer you’re looking for
Explanation: got it right on A PEX
Consulting firms and human resource departments have spent innumerable hours attempting to develop executive compensation programs that vwill align the goals of a firm's managers with those of the fim's shareholders. which the follawing compensation packages is most likely to accomplish this task? 1) An annual salary of $500,000 and a stock option bonus package that provides 100,000 shares after one year 2) An annual salary of $500,000 and a stock option bonus package for a total of 250,000 shares, with 50,000 shares vesting at the end of each of the next five years 3) An annual salary of $250,000 and a stock option bonus package that provides 250,000 shares after five years 4) An annual salary of $800,000
Answers
Answer:
2) An annual salary of $500,000 and a stock option bonus package for a total of 250,000 shares, with 50,000 shares vesting at the end of each of the next five years
Explanation:
As per the given options, the second option is most likely selected for achieving the task as it aligned the goal of the management with the goal of the firm. Also if there is a good salary than it is sufficient for taking care of the short term needs of an employee also the employee do his best for better the share price so that the company and the employee get the benefit in the long term
Therefore the second option is correct
An investment offer that promises what, to most people, to be an unreasonable rate of return on an investment most closely describes:
Answers
An investment offer that promises what, to most people, to be an unreasonable rate of return on an investment most closely describes Ponzi scheme.
Investment offers that promise an unusually high rate of return on an investment should be treated with extreme caution.
Such offers may be a type of Ponzi scheme, where investors are promised high returns but, in reality, the returns are generated by money from later investors rather than from legitimate investments or profits.
If you are considering such an offer, it's important to do your research and understand all the risks and potential downsides of the investment before committing any money.
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Why did the author introduce factors of
production before discussing land, labor and
capital?
A
to help the reader understand what
economic resources are before introducing
the three groups of economic resources.
B
to help the reader understand the role of
economists before introducing what it is that
economists study
с
to help the reader understand why there is
demand for certain inputs before
introducing the idea of input scarcity
D
to help the reader understand what goods
and services are before introducing how
those goods and services are brought about
Answers
Answer: A . to help the reader understand what economic resources are before introducing the three groups of economic resources.
Explanation:
Land, labor and capital are the three most important factors of production so in introducing factors of production first, the author wanted to give a background of what factors of production are before then giving the types of factors there are.
The background information given is to enable the reader understand what economic resources/ factors of production are so that they would then be able to understand the general need for land, labor and capital when they are introduced.
The general ledger can be used to determine which of the following (select all answers which apply): Multiple select question. which accounts are being used by a company and their balances at any given time. common and unique accounts used by a business. increases and decreases in all accounts in a business. a complete record of each transaction in one account.
Answers
Answer:
✓which accounts are being used by a company and their balances at any given time.
✓common and unique accounts used by a business.
✓increases and decreases in all accounts in a business.
Explanation:
In domain of bookkeeping, General ledger can be regarded as nominal ledger, which is bookkeeping ledger in which accounting data is been posted from journals as well as subledgers. The subledgers could be cash management, purchasing and projects, accounts payable and accounts receivable as well as fixed assets. It should be noted that general ledger can be used to determine;
✓increases and decreases in all accounts in a business.
✓which accounts are being used by a company and their balances at any given time.
✓common and unique accounts used by a business.
The general ledger can be used to determine:
which accounts are being used by a company and their balances at any given time.the common and unique accounts used by a businessan increases and decreases in all accounts in a business.In accounting, a general ledger refers to a record that entails all financial transaction of a firm that provide an accurate entries for financial statements.
Hence, the general ledger can be used to determine which accounts are being used by a company and their balances at any given time, the common and unique accounts used by a business and an increases and decreases in all accounts in a business.
Therefore, the Option A, B and C is correct.
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What will be Gamma Inc.'s return on equity if total asset turnover is 0.85, operating profit margin is 0.15, two-thirds of its assets are financed through equity, and debt burden is 0.6
Answers
Based on Gamma Inc's asset turnover, operating margin, and debt burden, the Return on Equity would be 11.48%.
What would be Gamma's Return on Equity?This can be found by the formula:
= Asset turnover x Operating profit margin x Leverage ratio x Debt burden
Solving gives:
= 0.85 x 0.15 x (1 / (2/3)) x 0.6
= 11.475%
= 11.48%
In conclusion, the ROE is 11.48%.
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Van and Amy Alberti live in Swarthmore, PA. Their son, Carlos, is an artist living in New York City.
с
1
G
X
M
M
For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U. S. GDP as part of consumption (C),
investment (1), government purchases (G), exports (X), or imports (M). Check all that apply.
Transaction
The town of Swarthmore puts on a fireworks display for the Fourth of July.
The Albertis build an addition on their house.
Van buys a sweater made in Guatemala.
>
Carlos paints a landscape and sells it to an art collector in Japan.
s
Amy gets a haircut.
Answers
The town of Swarthmore puts on a fireworks display for the Fourth of July this transaction would be included in the calculation of U.S. GDP as part of "government purchases (G)" because it is a purchase made by a government entity.
The Albertis build an addition on their house - This transaction would be included in the calculation of U.S. GDP as part of "investment (I)" because it is an investment in fixed capital such as a house.
Van buys a sweater made in Guatemala - This transaction would be included in the calculation of U.S. GDP as part of "consumption (C)" because it is a purchase made by a household. However, since the sweater was made in Guatemala, it would also be included in the calculation of "imports (M)" because it is a purchase of a foreign-made good.
Carlos paints a landscape and sells it to an art collector in Japan - This transaction would be included in the calculation of U.S. GDP as part of "exports (X)" because the buyer is a foreign entity and the sale is taking place outside of the U.S. economy.
Amy gets a haircut - This transaction would be included in the calculation of U.S. GDP as part of "consumption (C)" because it is a service purchased by a household.
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which is the best way to express interest in a new job call the employer list reasons for wanting the job send a resume communicate your interest A. call the employer B. list reasons for wanting the job C. send a resumè D. communicate your interest
Answers
Answer:
(C) send a resumé
A buyer or seller that is unable to affect the market price is called:.
Answers
Assume that your organization's chief financial officer (CFO) has just completed a presentation to the board of trustees concerning the analysis of a proposed ambulatory surgery center costing $2 million. During the presentation, the CFO indicated that the project had a net present value (NPV) of $786,339 and an internal rate of return (IRR) of 17.3 percent. Based on its risk, the project was judged to have a cost of capital of 13 percent. Which of the following statements is most correct?
a. The project is financially acceptable because its NPV is positive.
b. The project is financially acceptable because its IRR is greater than zero.
c. The project is financially unacceptable because its NPV is less than the project's initial investment cost.
d. The project is financially unacceptable because its IRR is greater than its cost of capital.
e. The project is financially unacceptable, but it may have sufficient social value to make it worthwhile.
Answers
The correct statement based on the given scenario is the project is financially acceptable because its NPV is positive. Option A is correct.
The NPV is a measure of the project's profitability and takes into account the time value of money. A positive NPV indicates that the project will generate more cash flows than its initial investment cost, and therefore is financially acceptable. The IRR is also a measure of profitability, but it does not take into account the project's initial investment cost.
The cost of capital is the minimum return that the project must generate to be acceptable, and in this case, the project's IRR of 17.3% is greater than its cost of capital of 13%, indicating that the project is financially viable. Therefore, options c, d, and e are incorrect.
Therefore, option A is correct.
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How does hard work help our economy?
Answers
Answer:How important is hard work for avoiding poverty?The phrase, “Pull yourself up by your own bootstraps” is one that is embedded in the American lexicon. As we have discussed in earlier modules, this is often the predominant mind set when it comes to explaining poverty. There is a widespread belief that with hard work and effort, anyone can avoid falling into poverty. In your group, ask yourselves, to what extent do you feel that hard work is sufficient for achieving economic success?The Role of Motivation and Hard WorkIn our research, we have given considerable thought to the role that motivation and hard work plays in getting ahead. In the course of writing Chasing the American Dream, we talked with dozens of people from many walks of life around this topic. Our overall conclusion is that hard work is a necessary but not a sufficient condition for getting ahead. In other words, hard work and effort are generally important ingredients for reaching one’s goals in life, but they do not guarantee success in and of themselves.We can think about this relationship in the following way. It is difficult to imagine individuals doing well in life without a decent amount of effort and work. Even for those born into wealth, hard work and motivation are generally required for reaching one’s goals. And for those starting with much less, hard work and initiative would appear to be essential.On the other hand, we have talked with many people who have worked very hard throughout their adult lives, but have struggled to achieve economic success. During the course of a year, we interviewed women and men who have worked extremely hard but nevertheless found themselves in poverty or close to poverty.A Hard Working ExampleWe asked one such woman who was interviewed for our Chasing the American Dream book about how the general notion of the American Dream stacked up against the economic realities that she had seen.I think for most people it’s sort of a Horatio Alger’s thing of going from rags to riches. That anybody through their own hard work can pull themselves up in this country. But I think a whole lot of people have worked really hard and not been able to pull themselves up.My dad worked really, really hard. And the only reason he had $10,000 in the bank when he died is because his brother died and left him some. And then his house sold for a little over $20,000. And this is from a guy who worked his tail off his whole life long. He had paid employment until after age 80 despite his physical disabilities. So, hard work doesn’t necessarily get you ahead. I know that.We then asked her, “How does this experience affect your sense of fairness?”Well it makes me mad that things are not fair and that we don’t value hard work. And, in fact, one of the surest indicators for how hard you’ll have to work is your income. The people with lower incomes will have to work harder from a standpoint of backbreaking physical labor.You know, I make a lot more money than Elaine Nelson from my church. But she mops floors down at St. Peters Hospital and changes sheets and makes sure that the operating room is sanitary so that people can go home without a staph infection. Her work is really essential, but she’s only making like $9 or $10 an hour to do that kind of work. And I take her to places to get help with her utilities and take her to the food pantry at my church now and then ‘cause she doesn’t have a car. And she’s faced an eviction so many times since I’ve known her.And to me, that’s just so unfair that a person that does really important work that cares for our community… You know, having a safe, clean hospital is a very important thing. Why don’t we reward that adequately? It makes me really mad.Hard Work May Not Be EnoughWhat this woman and many like her discussed in our interviews relates to the fact that there are simply not enough decent-paying jobs to support all Americans. In an earlier module (Module 6) we relied on the analogy of musical chairs to illustrate the mismatch between the number of individuals in need of a decent paying job versus the limited number and availability of such jobs. The result is that for some Americans, no matter how hard they work, they still may not be able to get ahead economically.Do you agree that hard work is a necessary but not a sufficient condition for getting ahead? Can you point to examples of people you know that would confirm this? Are there cases where hard work may not be important in getting ahead? How is this accomplished? Overall, how important is motivation and determination in avoiding poverty? These are some of tque
Tickets to a fundraiser are $14 if purchased ahead of time and $25 if purchased at the door. The total amount raised from all ticket sales was $625. If eleven tickets were purchased at the door, how many tickets were purchased ahead of time?.
Answers
($14)(25)=$350
($25)(11)=$275
$350+$275= $625
which of the following is professor rivkin's definition of strategy? strategy is concerned with the annual planning processes by which an organization determines its annual targets and budget allocations. strategy is the integrated set of choices that positions the business in its industry so that it generates superior financial returns over the long run. strategy refers to an approach to business planning that is based on the objectives of the various stakeholders affected by the organization's activities. strategy refers to those aspects of management that are the responsibility of an organization's most senior managers.
Answers
The correct definition of strategy, according to Professor Rivkin, is Strategy is the integrated set of choices that positions the business in its industry so that it generates superior financial returns over the long run.
This definition highlights the importance of a comprehensive and long-term approach to business planning, with the goal of creating a competitive advantage and generating financial returns in the long run.
It emphasizes the integration of different choices and the positioning of the business in the industry, both of which are crucial for success in today's competitive market.
The other definitions are either too narrow in scope (a) or too focused on specific aspects of management (d) and (c) are too broad and do not fully capture the essence of strategy as defined by Professor Rivkin.
Hence, the correct answer is (b).
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--The given question is incomplete; the complete question is
"Which of the following is Professor Rivkin’s definition of strategy? (a) Strategy is concerned with the annual planning processes by which an organization determines its annual targets and budget allocations. (b) Strategy is the integrated set of choices that positions the business in its industry so that it generates superior financial returns over the long run.
(c) Strategy refers to an approach to business planning that is based on the objectives of the various stakeholder groups affected by the organization’s activities.
(d) Strategy refers to those aspects of management that are the responsibility of an organization’s most senior managers."--
_______are independent businesses that do not own the products they sell. They act as intermediaries to brinna
buyers and sellers together
Agents and brokers
Wholesalers
Retailers
Final consumers
Answers
Answer:
Agents and brokers
Explanation:
Agents and brokers connect buyers and sellers. They are contracted by either sellers or buyers to help them increase sales or find items to buy. Agents and brokers act on behalf of their clients.
Wholesalers and retailers take ownership of the goods they sell. They first buy the goods, which gives them title to the goods before selling to retailers or consumers. Agent and brokers do not buy goods. They look for buyers or sellers for their clients' merchandise.
A public relations department responds to negative events by
A. using spin to control damage. CORRECT ANSWER
B. lying to the general public.
C. creating competitive ticket packages.
D. developing special events to the public.
Answers
An organization's negative events can be responded to by the public relations department using spin to control damage. Option A is correct.
What is the role of the public relations department?The main function is to develop strategies and actions that help an organization to communicate with its stakeholders in a positive way, favoring the creation of relationships that can be converted into business.
Public relations professionals are able to favorably influence the opinions and perceptions of customers, suppliers and investors.
Therefore, the public relations department is also responsible for dealing with adverse situations, looking for ways to control and circumvent the situation so that the company maintains a positive and valuable image with its target audience.
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When governments allow one highly regulated business to control an
essential service, such as water treatment, they create:
A. a public oligopoly.
B. a natural monopoly.
C. restricted competition.
D. monopolistic competition.
Answers
The type of Monopoly that occurred when a regulated business is been given control on essential service is B: natural monopoly.
A natural monopoly can be regarded as a kind of monopoly that occurr, as a result of a single firm serving market at lower cost that is even lower than that of combination of two or more firms.It do occur when government give that control to a firm on essential service such as water treatment.
Therefore, option B is correct.
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Answer:
B. a natural monopoly.
Explanation:
Which of the following is not a generally practiced method of presenting the income statement?
a. Including prior period adjustments in determining net income
b. The single-step income statement
c. The consolidated statement of income
d. Including gains and losses from discontinued operations of a component of a business in determining net income
Answers
The method of presenting the income statement that is NOT generally practiced is option a: "Including prior period adjustments in determining net income."
The income statement is a financial statement that summarizes a company's revenues, expenses, gains, and losses over a specific period. It provides insights into the profitability and financial performance of the business. Various methods can be used to present the income statement, but some are more commonly practiced than others.
a. Including prior period adjustments in determining net income: This method is NOT generally practiced when presenting the income statement. Prior period adjustments are corrections made to the financial statements of a previous reporting period, and they are typically disclosed separately from the current period's income statement.
b. The single-step income statement: This is a commonly used method that presents revenues and gains separately from expenses and losses, without categorizing them into multiple sections or subsections.
c. The consolidated statement of income: This is also a commonly practiced method, particularly for companies with subsidiaries or divisions. It combines the financial results of all consolidated entities into a single statement of income.
d. Including gains and losses from discontinued operations: This is another commonly used method where gains and losses from discontinued operations or components of a business are reported separately, providing transparency about the impact of such activities on net income.
Therefore, option a is the method that is NOT generally practiced when presenting the income statement.
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Given the 2020 recession, what should be the goal of monetary policy? Should the Fed enact expansionary or contractionary policy? In other words, should the Fed increase the money supply/credit supply or decrease the money/credit supply. Explain what they might do to achieve their goal.
Answers
Answer:
Expansionary monetary policies
Explanation:
A recession is characterized by reduced economic activities, a high unemployment rate, and low business incomes. The economy experiences a reduced demand for products and services, leading to low production and a slow economic growth rate.
In a recession like in 2020, the Fed should employ measures that will stimulate economic growth. The appropriate measures are the expansionary monetary policies. These policies seek to increase liquidity in the market, thereby increasing the aggregate demand. Expansionary monetary policies increase the money supply in the economy; they include a reduction in the reserve requirement, reduction in the discount rate, and open market purchases.
What is a sales quote?
Answers
Answer:
Explanation:
A sales quote allows a prospective buyer to see the costs that will be involved for desired work.
How do you feel about special treatment for preferred customers? Can a company go too far in rewarding them? Record your response in your journal.
Answers
I believe that companies should reward their preferred customers for their loyalty. However, I think that the company should be careful to not go too far in rewarding them. When companies give preferential treatment to certain customers, it can create animosity among customers who are not given the same advantage.
Companies should ensure that their reward systems are fair and transparent, so that customers know what they need to do in order to receive special treatment. Additionally, companies should make sure that the rewards they give out are not too extravagant, as it can cause customers to become too entitled. Companies should strive to make sure that all customers are given equal opportunities to receive rewards.
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operation fundamental thx a lot
1. Method used to find a distribution center that will minimize distribution costs?
A. The Factor- Rating Method
B. Location Cost-Volume Analysis
C. Center-of-Gravity Method
D. Transportation Model
Answers
Center-of-Gravity Method is the method used to find a distribution center that will minimize distribution costs. The correct answer is option C
The center-of-gravity method is used to find a distribution center location that will minimize distribution costs. It considers the geographic locations of demand points (customers) and determines the center of gravity based on the weights (demand) and distances. The center of gravity represents the optimal location that minimizes the total transportation costs.
By using mathematical calculations, the center-of-gravity method takes into account factors such as customer demand, transportation costs, and distances between potential distribution center locations and customers. It allows companies to identify the location that will result in the most efficient distribution network and minimize overall transportation costs.
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According to the calculator, Demarco and Tanya will pay a total of _____ in interest over the life of their loan. This means their total cost, including the principal they must borrow, is approximately _____. This amount is _____ than what they would pay in total using the fixed-rate mortgage
Answers
If you have a fixed-rate contract, the condition of the economy will not affect it because the loan fee is fixed. Then again, a flexible rate home loan will be essentially influenced by the economy, which could bring about a huge installment shock on the off chance that the rate increases.
What might pay in absolute utilizing the fixed-rate contract?
A fixed-rate contract is a kind of house credit that has a settled upon financing cost for the whole term of the credit.
The borrower will continue to make similar month-to-month head and premium installments. The credit sum is increased by the financing cost to decide the premium on fixed-rate contracts. The home loan interest can be isolated into yearly and regularly scheduled installments.
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cost or factor depletion is based on ____ level, not time as used in depreciation.
Answers
Cost or factor depletion is based on the usage level, not time, as used in depreciation.
In contrast to depreciation, which allocates the cost of an asset over its useful life in a systematic and rational manner based on time, depletion is a method of allocating the cost of a natural resource based on the usage or extraction of the resource. This method takes into account the amount of resource that has been extracted or consumed during a given period.
Depletion is commonly used for natural resources such as minerals, timber, oil, and gas, which have a limited quantity available for extraction. The usage level represents the proportion of the resource that has been consumed, and it determines the amount of cost that should be allocated to the current accounting period.
This approach is more suitable for natural resources because their value is directly related to the remaining quantity that can be extracted, rather than the passage of time.
By using the usage level as the basis for depletion, businesses can more accurately reflect the consumption and reduction in the value of the natural resources they own.
This method helps to match the cost of the resource with the revenue generated from its extraction or sale, providing a clearer picture of a company's financial performance related to its natural resource holdings. In summary, cost or factor depletion is based on usage level, making it a more appropriate method for allocating the cost of natural resources compared to time-based depreciation.
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How to Get rid of my Modules without getting caught by my Mom
Answers
Answer:
for me going away from home or background of home
The table shows the terms of a fixed-rate mortgage.
Which accurately describes the terms of this mortgage? Check all that apply.
The homeowner is borrowing $360,000.
The monthly interest rate is 4 percent.
Monthly payments must be made for 30 years.
The annual interest rate is 4.8 percent.
The homeowner is borrowing $200,000.
Monthly payments must be made for 360 years.
Answers
The fixed-rate mortgage concept is used in home loans. Monthly payments for 30 years, the interest rate is 4.8%, and borrowing $200,000.
What is a fixed-rate mortgage?It is usually used in home loans with a fixed interest rate during the term of the loan. It is beneficial because once the rate of interest is fixed it is not influenced by the increase in the rate in the future.
C - Monthly payments for 30 years.
D - The interest rate is 4.8 % annually
E - borrowing $200,000.
Therefore, options C, D, and E explain the fixed-rate mortgage.
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