The physical flow of units in a process cost system is fully accounted for by the production report.
In a process cost system, the production report serves as a comprehensive record of all units and costs involved in the production process. It tracks the movement of units through various stages of production, such as raw materials, work-in-progress, and finished goods. The production report captures important information such as the quantity of units produced, the costs incurred at each stage, and the final output. This report helps management assess the efficiency of the production process and make informed decisions regarding resource allocation and cost control. By providing a detailed account of the physical flow of units, the production report ensures accurate cost calculation and enables businesses to evaluate their performance effectively.
Know more about cost system here:
https://brainly.com/question/17275741
#SPJ11
Continuous scheduling would most likely be used for advertising: bathroom cleaner. school supplies. toys. snow blowers.
Continuous scheduling is a marketing strategy that involves scheduling advertisements for a product or service to run consistently over a long period of time.
When considering which products to use this strategy for, a key factor to consider is the product's frequency of use or purchase. In the case of bathroom cleaner, it is a product that people need to purchase frequently, making it a good candidate for continuous scheduling. As people use the bathroom daily, they will be more likely to notice and remember the cleaner's advertisement when it is consistently displayed over time. Additionally, the bathroom is a space where people place a high priority on cleanliness, making it an area where they are more likely to pay attention to advertisements for cleaning products. Therefore, bathroom cleaner would be a product that would benefit from a continuous scheduling advertising strategy.
To know more about cleaner visit;
brainly.com/question/12947620
#SPJ11
Think of a substantial product you regularly purchase, such as video games or jeans. If supply is high and
demand is low, what happens to the cost? How might that affect someone's income? Likewise, if supply is low
and demand is high, what happens to the product's cost? How might that affect someone's income?
Answer:
See below
Explanation:
1. When the supply is high, and demand is low, an item's cost will probably come down. High supply with low demand creates a surplus in the market. Seller will offer the lowest prices possible to woe buyers.
When an item's prices go down, buyers will spend less money buying the product. The buyer saves some money, which is equivalent to having more income than before.
2. With a low supply but high demand, prices tend to go up. There will be great competition for the few goods from the many buyers. As a result, suppliers will hike prices and make more profits.
An increase in prices forces buyers to spend more money to buy the same commodities. Their disposable income decrease, which is the same as having a reduced income
2. A change in aggregate demand is caused by a change in the price level, other things equal.
T/F
3. Determinants of Aggregate Supply: List the three factors that shift the aggregate supply curve.
4. A decrease in aggregate supply will (increase, decrease) ___ real output and (increase, decrease) ___ the price level. Such a change in aggregate supply contributes to (demand-pull, cost-push) ___ inflation.
5. A significant decrease in aggregate demand can result in recession and cyclical unemployment.
T/F
2. True. A change in aggregate demand is caused by a change in the price level, other things equal.
3. The three factors that shift the aggregate supply curve are changes in resource prices, changes in technology, and changes in the legal and institutional framework.
4. A decrease in aggregate supply will decrease real output and increase the price level. Such a change in aggregate supply contributes to cost-push inflation.
5. True. A significant decrease in aggregate demand can result in recession and cyclical unemployment.
2. True. A change in aggregate demand is caused by a change in the price level, assuming that other factors influencing aggregate demand remain constant. When the price level changes, it affects the purchasing power of consumers and businesses, leading to a change in their spending behavior and thus impacting aggregate demand.
3. The three factors that shift the aggregate supply curve are changes in resource prices, changes in technology, and changes in the legal and institutional framework. Changes in resource prices, such as labor or raw materials, directly affect the cost of production and influence the willingness of firms to supply goods and services. Technological advancements can improve productivity and efficiency, leading to an increase in aggregate supply. Changes in the legal and institutional framework, such as regulations or taxes, can impact the costs of production and influence the behavior of businesses, consequently affecting aggregate supply.
4. A decrease in aggregate supply will decrease real output and increase the price level. When aggregate supply decreases, firms are producing fewer goods and services, resulting in a decrease in real output. At the same time, due to the reduced supply, prices tend to rise, leading to an increase in the price level. This situation is referred to as cost-push inflation because it is driven by increased production costs and reduced output capacity.
5. True. A significant decrease in aggregate demand can lead to a recession and cyclical unemployment. Aggregate demand represents the total demand for goods and services in an economy. When aggregate demand declines significantly, businesses experience a decrease in sales, leading to a reduction in production and employment levels. This can result in a recession, characterized by a decline in economic activity and an increase in unemployment rates, particularly cyclical unemployment, which is directly linked to the business cycle.
Learn more about supply curve here
https://brainly.com/question/32605101
#SPJ11
What is the npv assuming cash flows all come at the end of each period wall street prep?
The npv assuming cash flows all come at the quit of each length of wall road prep is the net gift value (NPV) component. the existing value (PV) of a move of cash flows represents how a great deal the future coins flows are well worth as of the cutting-edge date.
Cash flows refer to the net balance of coins stepping into and out of an enterprise at a specific point in time. coins are constantly stepping into and out of a business. for instance, whilst a store purchases stock, cash flows out of the commercial enterprise toward its providers.
Add your internet income and depreciation, then subtract your capital expenditure and trade in working capital. loose coins waft = net income + Depreciation/Amortization – change in operating Capital – Capital Expenditure. net earnings are the organization's income or loss in the end its expenses had been deducted.
Cash flows is essential to be understood properly as it facilitates you to become aware of your assets of income and the way you spend your cash. Armed with this knowledge, you can take the proper motion to hold a tremendous coin flow and in the long run reap your monetary desires.
Learn more about Cash flows here:
https://brainly.com/question/735261
#SPJ4
Im
What is the formula for determining run rate?
Current revenue for one month x 12
Current revenue for one month / 12
Current revenue for one month - 12
Current revenue for one month + 12
To calculate run rate, take your current revenue over a certain time period—let's say it's one month. Multiply that by 12 (to get a year's worth of revenue). If you made $15,000 in revenue for each month, your annual run rate would be $15,000 x 12, or $180,000.
"COMPUTER SHOP"
Management Theory
Management Plan/Sustainability Plan
The computer store may embrace TQM as its management philosophy (TQM). TQM is a management strategy that places an emphasis on enhancing the quality of products and services continuously.
Does TQM involve ongoing improvement? Why?TQM is centred on enhancing organisational processes continuously to produce high-quality goods and services. Doing things correctly the first time and every time is TQM's ideal objective. The final arbiter of quality is the consumer. Quality cannot be raised without suffering considerable production losses.
Whole quality management definition TQM as a method of management?Total Quality Management (TQM) is a management paradigm based on the idea that by having all of an organization's members, from entry-level employees to its highest ranking executives
To know more about TQM visit:-
https://brainly.com/question/17368639
#SPJ1
If my revenue is one million and my expenses are 1,386,000, what's my profit in percentage
The profit in percentage given the revenue and the expenses is -38.60%
What is the profit in percentage?Percentage is the fraction of a number expressed as a value out of 100. The sign that is used to represent percentage is %. In order to convert a number to percentage, multiply by 100.
Profit is the difference between revenue and expenses. Revenue is the total income earned by a company before any deductions are made. Expenses include all the cost incurred in running a business.
Profit = revenue - expenses
1,000,000 - 1,386,000 = -386,000
Profit in percentage = (profit / revenue) x 100
(-386,000 / 1,000,000) x 100 = -38.6%
To learn more about profit, please check: https://brainly.com/question/26181966
#SPJ1
give at least 3 personal gains in your business (my gain,community gain and country gain) by considering the table below
Answer:
My Business- Fashion Designing
My Gain- Daily profit generation, Job Satisfaction, Improvement of my business skill.
Community Gain- Access to well-designed dresses, Training for youths who wish to gain the skill
Country Gain- Employment of citizens, Contribution to the gross domestic product
Explanation:
In my business as a Fashion Designer, I benefit from the fact that I can make money for myself doing what I love. The business also affords me the opportunity to improve my business skill. For instance, good marketing helps me reach a wider audience.
The community I live in benefits from my service because they can always come to design their dresses in whatever styles they desire. Youths and others who wish to gain some skill can also register at an affordable price.
The country I reside in also benefits from the revenue generated from the business because it contributes to its gross domestic product. The citizens are also gainfully employed through the business.
My business: Pharmacy
My gain: Profit, income, access to free medical license drugs, safety, good health
Community gain: Access to good license My business: Pharmacy
My gain: Profit, access to free medical license drugs, safety, good health
Community gain: Access to good license drugs, ease of affordability, wellness and wholeness, free medical advice
Country gain: Employment of labor, access to good healthcare, tax, contribution to country's GDP, wellness and wholeness
for better understanding, lets explain what profits in business means
The aim of any business is to make profit. Business is referred to as any task or activity that aim to provide goods and services to people in order to make profitProfit is simply the amount of money a business earns above and beyond what it spends for salaries and other expensesbusiness gains covers the profit and other advantages be it pleasure, enjoyment, relaxation etc obtained or derived from any business transactionsfrom the above, we can therefore say that the answer My business: Pharmacy
My gain: Profit, access to free medical license drugs, safety, good health
Community gain: Access to good license drugs, ease of affordability, wellness and wholeness, free medical advice
Country gain: Employment of labor, access to good healthcare, tax, contribution to country's GDP, wellness and wholeness, is correct
learn more about Profits in business from:
https://brainly.com/question/24477585
according to the textbook, those critical of the world trade organization’s policies claim the organization is
According to the textbook, those critical of the World Trade Organization's policies claim that the organization is undemocratic and favors the interests of developed countries over those of developing countries. What is the World Trade Organization (WTO)?
The World Trade Organization (WTO) is a global organization that regulates international trade by establishing rules and resolving disputes between member countries. Its primary goal is to promote free trade by lowering trade barriers such as tariffs, quotas, and other trade restrictions. However, some critics argue that the WTO's policies favor developed countries over developing countries. They claim that the organization is undemocratic, unaccountable, and secretive, and that it is controlled by the rich and powerful.
These critics also argue that the WTO's policies contribute to the exploitation of workers and damage the environment, among other concerns. The WTO has also been criticized for its handling of intellectual property rights, agriculture, and services. Some people believe that the organization's policies benefit large corporations at the expense of small businesses and farmers. Therefore, according to the textbook, those critical of the World Trade Organization's policies claim that the organization is undemocratic and favors the interests of developed countries over those of developing countries.
To know more about critical visit:
https://brainly.com/question/15091786
#SPJ11
An increase in the price of a good would a. increase the amount purchased by buyers. b. decrease both the quantity demanded of the good and the quantity supplied of the good. c. give producers an incentive to produce more. d. increase the supply of the good.
decrease both the quantity demanded of the good and the quantity supplied of the good.
influences of Business environment,
Factors that Influence the business environment are :
Economic environmentSocial environmentTechnological environmentPolitical environmentLegal environment
The business environment means the total of all the individuals, and institutions that could affect the working of the business firm.
Importance of business environment:
Business environments help the firm to prepare itself for every possible obstruction or hindrance that can affect the functioning of the firm.It also helps the firm to adjust to frequent changes.The economic environment is all the things that create an economic impact on the firm.
The social environment is all the traditions and customs of the society that creates an impact on the firm.
The technological environment is all the impact on the firm caused due to new technology and upgradations.
The political environment is the conditions and behavior that the elected representatives hold toward the business
The legal environment is entirely based on the rules and legislation of the authorities.
For more about Business Environment refer to the link : https://brainly.com/question/26589766
Who connects you with buyers and sellers of contracts for a fee?
Bankers
O Speculators
O Realtors
O Brokers
bankers
Real Estate Question
A buyer is purchasing a property for $500,000. He has a down payment of $50,000 and is financing the rest. What's the amount of the loan origination fee if the lender charges one-and-a-half points? Please explain your work as well.
Answer Choices:
$5,000
$6,750
$750
$7,500
Answer:
Amount of the loan origination fee = $7,500
Explanation:
Given:
Purchase cost of house = $500,000
Down payment cost = $50,000
Lender charges point = 1.5 points[%]
Find:
Amount of the loan origination fee
Computation:
Amount of the loan origination fee = Purchase cost of house x Lender charges point
Amount of the loan origination fee = 500,000 x 1.5%
Amount of the loan origination fee = $7,500
last year, milan had $20,000 to invest. he invested some of it in an account that paid 8% simple interest per year, and he invested the rest in an account that paid 6% simple interest per year. after one year, he received a total of $1380 in interest. how much did he invest in each account?
Milan invested $12,000 in the account that paid 8% simple interest per year and $8,000 in the account that paid 6% simple interest per year.
Let's assume Milan invested x dollars in the account that paid 8% interest and (20,000 - x) dollars in the account that paid 6% interest.
The amount of interest he received from the account that paid 8% interest can be calculated as 0.08x (since 8% is equivalent to 0.08). Similarly, the amount of interest he received from the account that paid 6% interest can be calculated as 0.06(20,000 - x) (since 6% is equivalent to 0.06).
According to the given information, Milan received a total of $1380 in interest after one year. So we can write the equation:
0.08x + 0.06(20,000 - x) = 1380
Now, let's solve this equation to find the value of x.
0.08x + 0.06(20,000 - x) = 1380
0.08x + 1200 - 0.06x = 1380
0.02x + 1200 = 1380
0.02x = 180
x = 180 / 0.02
x = 9000
Therefore, Milan invested $9000 in the account that paid 8% interest. To find the amount invested in the account that paid 6% interest, we subtract $9000 from the total amount invested, which is $20,000.
$20,000 - $9000 = $11,000
So, Milan invested $9000 in the account that paid 8% interest and $11,000 in the account that paid 6% interest.
To know more about the interest, visit:
https://brainly.com/question/26457073
#SPJ11
HELP QUICK PLEASE!!!!! William is not generally a risk-taker, but he knows he may need to step out of his comfort zone to make enough money for retirement. Which investment option would best meet William’s needs?
a US savings bond
a savings account
a commodity
a certificate of deposit
Consultants notify management of Discount Pharmaceuticals that a stroke medication poses a potential health hazard. Counsel indicates that a product recall is probable and is estimated to cost the company $8 million. How will this affect the company's income statement and balance sheet this period?
When Discount Pharmaceuticals is informed by its consultants that a stroke medication poses a potential health risk, the company's income statement and balance sheet are affected. The effect of a possible product recall, which is estimated to cost $8 million, will be felt on both statements in the current period.
The income statement is a financial statement that provides information on a company's revenue and expenses for a specific period. The income statement shows a company's net income or loss by subtracting expenses from revenue.
A balance sheet is a financial statement that gives information on a company's assets, liabilities, and equity at a specific time. The balance sheet shows how much the company owns (assets), how much it owes (liabilities), and how much of the assets are funded by investors (equity).
When a product recall is probable, the estimated cost is recorded as an expense on the income statement. In this case, the estimated cost of the recall is $8 million. Therefore, the company will have an $8 million expense recorded on the income statement in the current period. When a company incurs a large expense, such as a product recall, its net income decreases. When the net income decreases, the company's equity also decreases. This decrease in equity is reflected on the balance sheet in the current period. Therefore, the company's net income and equity will decrease by $8 million during the current period.
Learn more about Balance Sheet: https://brainly.com/question/1113933
#SPJ11
Which situation describes an oligopoly market structure? A. One company builds and sells all of the cars available in a developing country. B. Many different vendors sell the same few T-shirt designs to fans at a concert. C. Solar panels are only available from two companies operating in a country. D. A government gives one company full control over water treatment in a city.
Answer:
Answer C
Explanation:
Answer:C)
Explanation:just got it right<3
which of the following is not an appropriate condition to attempt to influence generic problem recognition? multiple choice it is early in the product life cycle. the firm has a small percentage of the market. external search after problem recognition is apt to be limited. it is an industry-wide cooperative effort. all of these choices are appropriate conditions to attempt to influence generic problem recognition.
"It is an industry-wide cooperative effort" is not an appropriate condition to attempt to influence generic problem recognition.
An industry-wide cooperative effort implies that multiple companies are already working together to address a problem, which means that generic problem recognition has already occurred. Therefore, attempting to influence generic problem recognition in this situation would be redundant.
On the other hand, the other conditions listed - early in the product life cycle, the firm has a small percentage of the market, and external search after problem recognition is apt to be limited - are all appropriate conditions to attempt to influence generic problem recognition. These conditions suggest that there may be a lack of awareness or understanding of the problem among potential customers, which provides an opportunity for companies to influence problem recognition through marketing and other strategies.
Overall, it is important for companies to consider the appropriate conditions for attempting to influence generic problem recognition in order to effectively market their products or services.
Learn more about generic problem recognition: https://brainly.com/question/31324315
#SPJ11
Lucinda is giving a presentation to her manager, glenn, who has a hub motivational value system. In order to appeal to his pragmatic and flexible nature in her presentation, she should:.
The thing which Lucinda has to do in order to appeal to his pragmatic and flexible nature in her presentation, she should:
Stress the benefits to different stakeholders.What is Pragmatism?This refers to the philosophy which believes that words and thought are powerful tools to help in solving problems in practical applications.
Based on the fact that Lucinda's manager is said to be a pragmatist who has a motivational value system, then she would have to base her presentation on the fact that it would be beneficial to different stakeholders.
Read more about pragmatism here:
https://brainly.com/question/7432344
A company is more likely to use a job costing system if:.
A company is more likely to use a job costing system if it engages in customized or unique projects, where each job has distinct characteristics and costs.
Job costing is a method of tracking and allocating costs to individual jobs or projects. Companies that offer custom manufacturing, construction, consulting services, or any other form of project-based work tend to utilize job costing systems.
This system allows them to accurately measure the direct and indirect costs associated with each job, facilitating cost estimation, pricing, and profitability analysis. Job costing provides detailed insights into the specific resources, labor, materials, and overhead expenses required for each project, enabling effective cost control and decision-making.
Learn more about job costing system
https://brainly.com/question/30870627
#SPJ11
Full Question : A company is more likely to use a job costing system if:. ___________
answer this question plz n thank you. (posted the 1st n 2nd question. gonna post 2 other ones.)
3. Many jobs in the Personal Services pathway—such as hairdresser, personal trainer, massage therapist or barber—involve caring for people’s physical needs. List two important qualities that might be needed for success in these kinds of careers and explain how each of the qualities you mentioned are important to finding success in this field.
Answer:
Confidece, and empathy.
Explanation:
Confidence to know you will do great at your job, and empathy to know how others feel about themselves!
Hope this helps! Brainliest plz!
Henry, a trainer at MyChem Inc., schedules training on handling hazardous chemicals for a group of newly hired employees. The training complies with OSHA regulations and is given to all employees upon hire along with periodic refreshers. The type of training described in this scenario is _____.
Answer:
Hazard Communication Standard (HCS) training program
Explanation:
The type of training described in this scenario is known as the Hazard Communication Standard (HCS) training program. This is a employee training program designed with the goal of explaining and reinforcing the written information regarding hazard labels and material safety data sheets, as well as how to behave around hazardous material and to apply this information to their workplace.
explain the following statement: "the opportunity cost of capital depends on the proposed use of cash, not the source of financing"
The statement "the opportunity cost of capital depends on the proposed use of cash, not the source of financing" highlights the idea that the cost of using capital is determined by the potential return that could be generated from alternative investment opportunities, rather than the specific source of funds used for financing.
In financial decision-making, the opportunity cost of capital refers to the return that could have been earned if the capital had been invested in an alternative project or opportunity. It represents the foregone potential return that comes with choosing one investment over another.
The source of financing, such as equity or debt, is important in terms of determining the cost of obtaining funds (e.g., interest payments for debt financing, dividends for equity financing). However, when assessing the opportunity cost of capital, the key consideration is the expected return that can be achieved from investing the capital in a specific project or opportunity.
For example, if a company is considering two investment projects, Project A and Project B, the opportunity cost of capital will depend on the potential returns that could be generated by each project. Even if Project A is financed through equity and Project B is financed through debt, the cost of capital will be determined by the expected return of each project, not the financing sources.
By focusing on the proposed use of cash rather than the source of financing, decision-makers can evaluate investment opportunities based on their potential returns and make informed choices that maximize value creation for the business.
learn more about "investment":- https://brainly.com/question/29547577
#SPJ11
The adjusted trial balance of Arctic Corporation at December 31 shows that sales revenue for the year was $ 525,000 and other revenue was $ 57,000. Cost of goods sold for that same period was $ 265,000, while other expenses totaled $ 195,000. The corporation declared and paid dividends of $ 10,000 during the year. The balance of retained earnings before closing entries was $ 490,000. Record the entry to close out the revenue accounts.
The journal entry to close out revenue accounts is Debit Sales Revenue 525,000, Debit Other Revenue (57,000), Credit Retained Earnings (582,000)
A journal entry is a record of a financial transaction made by a company and kept in its accounting records. A business's transactions are tracked in a journal, which also shows the debit and credit balances. These particular entries can aid in the authentication of transactions and make it easier to determine whether they are backed by bills. In the given question, the adjusted trial balance of Arctic Corporation on December 31 shows that sales revenue for the year, the entry has to be made considering revenue accounts.
The correct journal entry will be -
Sales Revenue A/c 525,000
Other Revenue A/c 57,000
To Credit Retained Earnings A/c 582,000
( Being the entry made to close out revenue accounts)
Read more about the journal on:
https://brainly.com/question/14279491
#SPJ4
Why doesn't the Lorax do anything to stop the Once-ler (hint: he's a symbol)? What does this tell us
about the future of business decisions?
Answer:
The Lorax is a symbol of environmental consciousness and his inaction in stopping the Once-ler represents the failure of society to prioritize the environment over economic growth. This tells us that if we do not take steps to balance economic growth and environmental sustainability, it could lead to long-term negative consequences for the environment and future business decisions.
Explanation:
The Lorax is a children's book by Dr. Seuss that explores the environmental impact of economic growth and consumerism. In the story, the Once-ler begins cutting down Truffula trees to make a product called Thneeds, despite the warnings of the Lorax, who speaks for the trees and the animals that depend on them.
The Lorax represents environmental consciousness and his inaction in stopping the Once-ler represents the failure of society to prioritize the environment over economic growth. The Once-ler's actions are driven by his desire for profit, and he continues to cut down trees despite the negative impact it has on the environment. The Lorax, as a symbol of environmental awareness, is unable to stop the Once-ler from destroying the ecosystem, which ultimately leads to the disappearance of the Truffula trees and the animals that depend on them.
This lack of balance between economic growth and environmental sustainability is a lesson that has implications for future business decisions. If businesses prioritize profit over environmental sustainability, it could lead to long-term negative consequences for the environment, which could ultimately harm the economic viability of those businesses. It is important for businesses to consider the environmental impact of their decisions and take steps to balance economic growth and sustainability for the long-term health of the environment and economy.
how would you choose the grocery store location for fizzys coconut water in order to increase sales and also help the consumer better understand your brand?
Companies should adopt usage-based positioning, which focuses on the particular use or application of the product, if they want to attract buyers. For example, a company might advertise that its product is excellent for gaming.
What does product positioning entail and why is it important?Product positioning is a sort of marketing that draws attention to the benefits of your product among a certain target market. Marketers can select the audience to target through market research and focus groups based on consumers' positive responses to the product.
How should a product be positioned in consumers' minds?How to Place Your Merchandise in Steps
Decide who your target market is.Determine the main advantages of your product.Boost the credibility of your brand.Provide a special value proposition.Think about audience division.Create a message.Conduct a study of the competition.Show off your knowledge.Learn more about target market: https://brainly.com/question/13895904
#SPJ1
when consumed, many goods and services have an impact on other people not using the product. Which word describes this impact ?
A. appreciation
B. depreciation
C. externality
D. inflation
Answer:
Explanation:
depreciation
When consumed, many goods and services have an impact on other people not using the product. Depreciation word describes this impact. The correct option is B.
What does it mean to deprecate a product?Application developers who have already subscribed to a product may still use it after it is deprecated, but no new developers may do so. We disapprove of this use of company funds for political activities. to say that you disapprove of something.
In order to maintain backward compatibility and give programmers time to bring affected code into compliance with the new standard, features are deprecated rather than immediately removed. The following are some of the primary causes of depreciation: A more potent substitute feature has taken the place of the former feature.
Thus, the ideal selection is option B.
Learn more about deprecating a product here:
https://brainly.com/question/4591900
#SPJ2
According to the video, what tasks are commonly performed by Farmworkers instead of by machines? Select three
options.
weeding
Opruning
preparing soil
transplanting
planting
Answer:
A: weeding
B: pruning
D: transplanting
Explanation:
trust me i just did it
enjoy :)
Customers must register before being allowed to order wine over the Internet so that legal age can be established. You know that the module to verify registration must be written and tested using data from Grapevine's existing database. This new module cannot be tested until the data from the existing system is loaded. You are going to hire a vendor to perform the programming and testing tasks for this module to help speed up the project schedule. Since they'll have access to your customer list and potentially other trade secrets, you'll asked them to sign a nondisclosure agreement. This is an example of which of the following?
A. Procurement documents
B. Standard form
C. Organizational process asset
D. Fixed cost contract
Answer:
D. Fixed cost contract
Explanation:
Ten thousand people wanted to attend a concert, but the stadium only seats 3,000. Because of the high demand, concert officials increased the price of admission to a point
where only 3,000 people were able to afford the price. Which of the following best relates to the other 7,000 people who were unable to attend the concert:
Limited demand
Price incentives
Price rationing
Excess supply
It would be an example of price rationing. Since 3000 could only attend, they would have to increase the price to gain a profit from the demand.