Option A is correct. The statement best describes an Institutional Review Board (IRB) is Subjects are told what the purposes of the study are, what participation in the study involves, what risks (if any) are involved in participating, and what the person can expect to receive in return for participation.
Under FDA guidelines, an Institutional Review Board is bunch that has been officially assigned to audit and screen biomedical examination including human subjects. As per FDA guidelines, an IRB has the position to endorse, require adjustments in (to get endorsement), or object research. This gathering survey serves a significant job in the assurance of the privileges and government assistance of human examination subjects.
The purpose behind IRB audit is to guarantee, both ahead of time and by occasional survey, that fitting advances are taken to safeguard the privileges and government assistance of people partaking as subjects in the examination. To achieve this reason, IRBs utilize a gathering cycle to survey research conventions and related materials (e.g., informed assent reports and examiner handouts) to guarantee insurance of the privileges and government assistance of human subjects of exploration.
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list one career cluster and three career pathways related to this cluster
Answer:
Business Management & Administration: General Management pathway: general manager: Walmart.
Business Management & Administration: Business Information Management pathway: IT manager: Walmart.
Business Management & Administration: Human Resources Management pathway: HR director: Meijers.
Business Management & Administration: Operation Management pathway: Operations manager: Meijers.
Business Management & Administration: Administrative Support pathway: Administrative assistant: Kroger.
Finance: Securities & Investments pathway: Bank teller: Huntington.
Finance: Business Finance pathway: accountant: Kroger.
Finance: Accounting pathway: auditor: H&R Block.
Finance: Insurance pathay: insurance claim agent: Amica.
Finance: Banking Services pathways: bank teller: Huntington.
Marketing: Marketing Management pathway: forecast manager: Adidas.
Marketing: Professional Sales pathway: salesperson: Adidas.
Marketing: Merchandising pathway: Sales Promotion manager: Walmart.
Marketing: Marketing Communications pathway: Advertising manager: Adidas.
Marketing: Marketing Research pathway: product planner: Nikes.
Explanation:
Business management and administration can be one of the career clusters.
What is a career?You maintain the same line of employment when you have a career. A profession can consist of one or several jobs. You may work for a single corporation or several. A career education, experience, and professional experience. A career is often referred to as a "career path."
One of the career clusters is a business management and administration.
Three paths to careers in this cluster
Management of corporate information will help them to become managers and know how to handle people.Management, in general, will help in smooth working. Human resource administration will make sure that the relationship between the employee and the employer is working smoothly.Learn more about career, Here:
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Every Saturday, Martin and hundreds of other shoppers visit Home Pro, a home improvement supply store, to buy supplies for their home improvement projects. These shoppers are ________ of Home Pro.
The shoppers that are illustrated in this scenario are simply the customers of Home Pro.
Who is a customer?A customer simply means a person that purchases a good or service from a business.
In this case, Martin and hundreds of other shoppers visit Home Pro, a home improvement supply store, to buy supplies for their home improvement projects.
Therefore, these shoppers are the customers of Home Pro.
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Jacky Enterprises Ltd will announce its earning result this year. The company earns $8 million dollars. The CEO is now considering the company’s investment and dividend policy. The current capital structure is 40% of debt and 60% of equity. The CEO thinks that the company should maintain the current capital structure. The company’s WACC is 15%. You are the financial advisor of Jacky Enterprises Ltd, please answer the following questions.
If the company’s new investment project A requires $10 million dollars. The expected return of the project A is 18%, should we accept project A? Please explain.
Compute the amount of dividend to be paid, if any. Will the company need to issue new debt and/or equity? Please explain.
Assuming that the project A is rejected for some uncontrollable reasons and the CEO is now considering another project B. Project B requires $15 million dollars and its expected return is 16%. If project B is accepted, please compute the amount of dividend to be paid. Will the company need to issue new debt and/or equity to finance this project? Please explain.
Project A
We should accept project A. Since the NPV = $500,000 of the project is positive, it means that the project should be accepted. The amount of dividend to be paid is $6,800,000. The company does not need to issue new debt and/or equity since the project is financed through retained earnings.
Project B
The amount of dividend to be paid is $6,800,000. The company needs to issue new debt and/or equity to finance the project, since the total amount of capital required ($15 million) exceeds the amount of retained earnings available ($6,800,000).
If the company’s new investment project A requires $10 million dollars and the expected return of the project A is 18%, we should accept project A. Here’s why:
Step 1: Calculate the cost of capital
The cost of capital (WACC) of the company is 15%.
Step 2: Compute the NPV of the project NVP = cash inflow / (1 + r)t – Initial investment
Where r = the cost of capital (WACC) of the company, t = year and the initial investment is $10 million.
The NPV of project A is:
NVP = 10,000,000 / (1 + 0.18) - 10,000,000
= $500,000.
Since the NPV of the project is positive, it means that the project should be accepted.
Compute the amount of dividend to be paid, if any. Will the company need to issue new debt and/or equity?
Dividend = Net Income - Retained Earnings
From the information given in the question:
Net income = $8,000,000
Debt = 40%
Equity = 60%
Then, Debt = 0.4 * $8,000,000
= $3,200,000
Equity = 0.6 * $8,000,000
= $4,800,000
Total Capital = $3,200,000 + $4,800,000
= $8,000,000
WACC = 15%
Therefore, Retained Earnings = Total Capital * WACC
= $8,000,000 * 15%
= $1,200,000
Dividend = $8,000,000 - $1,200,000
= $6,800,000
So, the amount of dividend to be paid is $6,800,000. The company does not need to issue new debt and/or equity since the project is financed through retained earnings.
Assuming that the project A is rejected for some uncontrollable reasons and the CEO is now considering another project B. Project B requires $15 million dollars and its expected return is 16%. If project B is accepted, please compute the amount of dividend to be paid. Will the company need to issue new debt and/or equity to finance this project?
The NPV of project B is:
NVP
= 15,000,000 / (1 + 0.16) - 15,000,000
= $200,000
Since the NPV of the project is positive, it means that the project should be accepted.
Dividend = Net Income - Retained Earnings
Net income = $8,000,000
Debt = 40%
Equity = 60%
Then,
Debt = 0.4 * $8,000,000
= $3,200,000
Equity = 0.6 * $8,000,000
= $4,800,000
Total Capital = $3,200,000 + $4,800,000
= $8,000,000
WACC = 15%
Therefore, Retained Earnings = Total Capital * WACC
= $8,000,000 * 15%
= $1,200,000
Dividend = $8,000,000 - $1,200,000
= $6,800,000
The company needs to issue new debt and/or equity to finance the project, since the total amount of capital required ($15 million) exceeds the amount of retained earnings available ($6,800,000).
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having an efficient supply chain is directly related to which element of value
Having an efficient supply chain is directly related to the element of value known as "Operational Excellence." Operational excellence is one of the five elements of value that companies can offer to their customers. This element is all about providing reliable, high-quality products or services at a lower cost than competitors.
An efficient supply chain is critical to achieving operational excellence because it helps companies streamline their production and distribution processes, reduce costs, and improve product quality. An efficient supply chain allows companies to get products to market faster and at a lower cost, which can be a significant competitive advantage. For example, companies with efficient supply chains can respond quickly to changes in customer demand or market conditions, which allows them to stay ahead of competitors.
They can also minimize waste and reduce the risk of inventory obsolescence by optimizing their production and distribution processes. In summary, having an efficient supply chain is directly related to the element of value known as operational excellence. By optimizing their supply chain processes, companies can reduce costs, improve product quality, and respond more quickly to changes in customer demand or market conditions, all of which are critical to achieving operational excellence. having an efficient supply chain is directly related to the element of value known as "operational efficiency." This element focuses on reducing costs, streamlining processes, and improving overall performance within the supply chain, resulting in increased value for both the company and its customers. An efficient supply chain allows companies to get products to market faster and at a lower cost, which can be a significant competitive advantage. For example, companies with efficient supply chains can respond quickly to changes in customer demand or market conditions, which allows them to stay ahead of competitors. They can also minimize waste and reduce the risk of inventory obsolescence by optimizing their production and distribution processes. In summary, having an efficient supply chain is directly related to the element of value known as operational excellence. By optimizing their supply chain processes, companies can reduce costs, improve product quality, and respond more quickly to changes in customer demand or market conditions, all of which are critical to achieving operational excellence.
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in the market for reserves, when the federal funds rate is above the interest rate paid on excess reserves, the demand curve for reserves is
In the market for reserves, when the federal funds rate is above the interest rate paid on excess reserves, the demand curve for reserves is negatively sloped.
The Fed anticipates that as expectations of net deposit outflows rise or fall, the demand curve for reserves will shift right or left as a result of the influence of bank liquidity management activities. The demand curve for reserves becomes perfectly elastic at the interest rate paid by the Fed on banks' reserve balances.
Why is there a downward slope in the demand curve for reserves?The interest bend inclines down to catch the possibility that as the expense of acquiring diminishes, banks will get more assets to expand their property of stores. Because only the Fed can supply reserves, the supply curve is vertical.
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Full Question = In the market for reserves, when the federal funds rate is above the interest rate paid on excess reserves, the demand curve for reserves is _____.
a) vertical.
b) horizontal.
c) positively sloped.
d) negatively sloped.
Job #4260 consisted of 1,000 units at a total cost of $200,000. The cost transferred to cost of goods sold for the sale of 600 of the units is ______.
The cost transferred to cost of goods sold for the sale of 600 of the units is 120,000. Frequently, market analysts use models with two sources of info: actual capital, with amount K and work, with amount L.
What is Total cost?In financial matters, total cost (TC) is the base dollar cost of creating some amount of result.
This is the total monetary cost of creation and is comprised of variable cost, which changes as indicated by the amount of a decent delivered and incorporates information sources like work and natural substances.
Work #4260 comprised of 1,000 units at a total cost of $200,000. The cost moved to cost of products sold for the offer of 600 of the units is
Total cost / units x sale of units
200,000 / 1,000 x 600
= 120,000
The negligible cost can likewise be determined by tracking down the subordinate of total cost or variable cost. Both of these subsidiaries work in light of the fact that the total cost incorporates variable cost and fixed cost, yet fixed cost is a consistent with a subsidiary of 0.
The total cost of delivering a particular degree of result is the cost of the multitude of variables of creation. Total cost in financial matters incorporates the total open door cost (benefits got from the following best other option) of each element of creation as a feature of its fixed or variable costs.
Therefore The extra total cost of one extra unit of creation is called minor cost.
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Sometimes a liquid can be sitting there and its molecules will become a gas. That’s called
___________________________________________.
Answer:
Una vez que toda la sustancia está en estado líquido, al continuar calentando vuelve a subir la temperatura y llega un momento en que las fuerzas intermoleculares ya son incapaces de mantener juntas las moléculas del líquido, por lo que éste hierve y se convierte en un gas, se produce la ebullición.
Assume you are the COO of Barcelona Restaurants and you realize that you have turned over probably 60% to 70% of management. Assume you believe that you have been hiring people with the correct technical skills to perform well but there have been other issues. For example, you believe that many of the managers have low confidence in their ability to be successful at whatever challenges or tasks they face so this creates a lot of stress and burn out. What might you do to help ameliorate this problem
.The program can also include regular feedback sessions, mentorship, and access to resources such as coaching and training.
The high turnover of management can be a symptom of a larger issue - the lack of confidence and support among managers. To address this, the COO can develop a managers' confidence and helping them succeed. This program can include workshops and training sessions that provide managers with the tools and skills they need to navigate challenges and make decisions. Additionally, feedback sessions can be part of the program to give managers regular opportunities to discuss their progress and challenges. Mentorship can also be offered to provide managers with guidance and support from experienced leaders.
Finally, the program can give managers access to resources such as coaching and training to help them develop their skills and knowledge. By providing managers with the support and resources they need, the COO can help reduce stress and burnout, and improve retention rates at Barcelona Restaurants.
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To help address the issue of low confidence and burnout among managers at Barcelona Restaurants, some strategies that can be implemented include ongoing training and development, fostering a supportive work culture, and implementing stress management techniques.
Explanation:To help ameliorate the problem of low confidence and burnout among managers at Barcelona Restaurants, there are several strategies you can implement:
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help needed soon
How are the costs of secured and unsecured loans different?
Question options:
A secured loan typically has lower interest rates costing less; an unsecured loan typically has higher interest rates costing more.
A secured loan is typically associated with a lower fee schedule and so costs less; unsecured loans typically have a higher fee schedule and so they cost more.
Secured loans generally have longer repayment terms and cost more; unsecured loans generally have shorter repayment terms and cost less.
Secured loans usually carry a higher interest rates and cost more; unsecured loans usually have lower interest rates and cost less.
Secured and unsecured loans differ in cost because A secured loan typically has lower interest rates costing less; an unsecured loan typically has higher interest rates costing more.
How are secured and unsecured loans different?A secured loan is one that is backed by the assets of the person being loaned the money. If the person is unable to pay, the asset is seized.
Unsecured loans are not backed by any assets which means that the lender will have nothing to claim in default. This makes these type of loans risky which is why they command more interest.
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Isaiah is in his 50s and currently does not have a retirement fund. However, he recently read a few articles about the insufficient savings of people in retirement and, as a result, he decides he wants to start now. He saves $500 per month for 15 years and earns 7% by investing in the stock market through an index fund.
Answer:
Future Value= $158,475.64
Explanation:
Giving the following information:
He saves $500 per month for 15 years and earns 7% by investing in the stock market through an index fund.
I assume we have to determine the value of the investment at the time of retirement.
We need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit= 500
n= 15*12= 180
i= 0.07/12= 0.005833
FV= {500*[(1.005833^180) - 1]} / 0.006833
FV= $158,475.64
Sports and entertainment products are non-perishable.
concerns about ethical behavior have led many companies to appoint a(n) , someone trained about matters of ethics in the workplace, particularly about resolving ethical dilemmas.
Concerns about ethical behavior have led many companies to appoint an Ethics Officer, someone trained about matters of ethics in the workplace, particularly about resolving ethical dilemmas.
An Ethics Officer is responsible for ensuring that the company's employees and operations are in compliance with ethical standards and applicable laws and regulations. They work closely with the senior management team to develop and implement policies and procedures related to ethical conduct, and also provide guidance and training to employees on ethical issues.
In addition, an Ethics Officer investigates complaints or concerns related to unethical behavior, and takes appropriate action to address such issues. By appointing an Ethics Officer, companies demonstrate their commitment to ethical conduct and their willingness to maintain a high level of integrity in their operations.
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9. If you found that you were in financial trouble because of credit and had great difficulty paying your monthly bills, what would you do?
Answer:
You would have to cut down on some luxuries, like lots of foods, amusement parks, shopping trips, etc. If you have have extra hours, work more hours, quite possibly take another job.
Explanation:
when the interest rate decreases, i. the domestic currency depreciates and net exports increase. ii. the return to saving increases and households save a higher fraction of income. iii. firms are able to finance more capital purchases and investment increases. iv. aggregate demand increases.ll and IV I, III and IV 1, 11, III DAN IV l and IV
When the interest rate decreases, i. the domestic currency depreciates and net exports increase, and iii. firms are able to finance more capital purchases and investment increases.
Currency depreciation refers to a decrease in the value of a country's currency relative to other currencies. When the domestic currency depreciates, it means that it can buy fewer units of foreign currency.
This can have several implications. It makes imports more expensive, as it takes more domestic currency to purchase the same amount of foreign goods.
On the other hand, it makes exports more competitive, as foreign buyers can purchase more of the domestic goods for the same amount of their currency. As a result, a depreciating currency can lead to an increase in net exports, as mentioned in the statement.
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The visual enhancement of any drawing through color, value, and texture
Answer:
That would be the composition of a work.
Source:
"The arrangement of elements within a work of art."
https://www.tate.org.uk/art/art-terms/c/composition
True/False
1. A thank you note sent after a job interview will serve as a reminder to those people you met.
2. When giving the time of your emploment on your resume, be sure to specify only the year of starting and ending of each job.
3. If an interviewer asks you what your weakness are, you should think for a moment before answering.
4. To prevent discrimination, all applicants for a job should be asked the same questions during an interview.
A thank you note sent after a job interview will serve as a reminder to those people you met is a false statement
2. False
3. False
4. False
What is an interview for a job?A job interview is known to be a kind of conversation tak that is said to occurs between a said and potential employer and that of a job applicant.
Note that During the job interview, the employer is one who has a lot of opportunity to appraise any kind of applicant's qualifications, as well as their appearance and full fitness in regards to the job opening.
Hence, A thank you note sent after a job interview will serve as a reminder to those people you met is a false statement
2. False
3. False
4. False
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Company A is raising $1 million at its initial public offering (IPO) by issuing 2,000 shares of stock?
The value of each share if you calculate it as $1,000,000/2,000 =500.
What is stock?A stock is referred to as a kind of ownership of certain items. When an individual holds stocks or shares in the market they are entitled as a stockholder or shareholder and liable for some dividend.
The process of announcing new shares of stock to the people for the first time in a private company is known as an initial public offering (IPO). An IPO allows a company to request equity capital from the general public.
The business has grown as a pre-IPO private company with a very small number of proprietors who own the stock in the company.
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The complete question is Probably
Company A is raising $1 million at its initial public offering (IPO) by issuing 2,000 shares of stock. What is the value of each share if you calculate it as $1,000,000/2,000 =
If the company has a tight budget, they only pay for the
advertising campaign out of current cash. What month is a better
time for them to conduct single advertising? Example?
The advantages and disad
The month of December may be a better time for a company with a tight budget to conduct a single advertising campaign. During this time, many businesses offer discounts and promotions to attract customers, which can result in lower advertising costs.
However, it is important to note that December is also a busy month for advertising, so competition may be high. The company should carefully plan its campaign to stand out and maximize its impact within its budget constraints.
December may be a better time for a company with a tight budget to conduct a single advertising campaign due to several factors. Firstly, during the holiday season, many businesses offer discounts and promotions to attract customers. This can create opportunities for the company to negotiate lower advertising costs or take advantage of bundled advertising packages. Additionally, people tend to be in a buying mindset during December, increasing the chances of a successful campaign. However, it's important to note that December is also a busy month for advertising, with increased competition. Therefore, the company should carefully plan its campaign to stand out and maximize its impact within its budget constraints.
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Explain why the bank has asked to see your business financial records?
Answer:
They might be looking for a higher level of comfort as the loan exposure grows,
Explanation: None
Pleasseeeeeee don't get me wrong..
Answer:
Equity Capital
Explanation:
Stocks or shares are the smallest units of a company. Shareholders is the title given to the owners of shares who also own the company. Shares of a company can be acquired when the business decides to raise more capital but offering more stocks through the stock market.
Companies sell their stocks to raise capital for expansion. Investors provide the capital required in exchange for ownership in the company. The money raised is equity capital because it comes from the company owners. Debt capital is when a business borrows from banks or other lenders.
6. Which of the following is a way that you can put your strengths to work?
A. thinking about achievements you have accomplished
B. identifying paths to entrepreneurship
C. making a decision to become an entrepreneur
D. giving greater freedom for opportunities
All of the aforementioned methods will assist one in achieving the goal-related aim they have set.
What is Entrepreneurship?The production or extraction of economic value is referred to as entrepreneurship. According to this definition, entrepreneurship is considered as transformation that often involves greater risk than is typical when beginning a firm and may also involve values other than just financial ones.
A person who starts and/or invests in one or more enterprises, taking on the majority of the risks and reaping the majority of the gains, is referred to as an entrepreneur.
Entrepreneurship is the practice of starting a business. The entrepreneur is frequently viewed as an innovator, a source of fresh concepts for products, services, businesses, and operational methods.
According to more specific definitions, entrepreneurship is the act of creating, starting, and operating a new company, which is frequently comparable to a small business. It may also be defined as the "ability and willingness to create, organize and effectively manage a company venture's risks in order to turn a profit."
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HD Corp and LD Corp have identical assets, sales, interest rates paid on their debt, tax rates, and EBIT. However, HD uses more debt than LD. Which of the following statements is correct?
a) Without more information, we cannot tell if HD or LD would have a higher or lower net income.
b) HD would have lower equity multiplier for use in the DuPoint equation.
c) HD would have to pay more in income taxes.
d) HD would have the lower net income as show on the income statement.
e) HD would have the higher operating margin.
a) Without more information, we cannot tell if HD or LD would have a higher or lower net income.
The use of more debt by HD may result in a higher interest expense and financial risk, which could lead to a lower net income. However, it could also result in a higher return on equity (ROE) due to the use of financial leverage. Without more information about the specific amounts and terms of debt used by HD and LD, it is not possible to determine which company would have a higher or lower net income.
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What is the term for a variety of activities designed to stimulate a trial or
purchase?
A. Sales promotion
B. Advertising
C. Public relations
D. Personal selling
Answer:
I think B.Advertising
Answer:
Sales Promotion
Explanation:
Just took the test.
1. What area of law protects the sale of a home?
common law
contract law
statutory law
criminal law
2. With respect to a contract, what does the term “consideration” mean?
Both parties agree to be considerate to one another.
Something of value must be exchanged between the parties.
One party offers valid terms, and the other party accepts those terms.
The terms of the contract are enforceable.
3. Which system of law is a complete set of rules enacted as a single written system or code?
common law
administrative law
civil law
statutory law
1 contract law
2 Something of value must be exchanged between the parties.
3 civil law
Why is the law important?
Laws are created for protect our general safety, and ensure our rights as citizens against abuses by other people, by organization's, and by the government itself. We have laws for help provide to our general safety.
How many kinds of Laws?
Natural or Moral Laws: Natural laws are the belief that certain laws of morality are inherent by human nature, reason, or religious belief.
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If the government guarantees sugar farmers a price of $1 per pound when the market equilibrium price is actually $0.50 per pound, which of the following will occur?
A shortage of sugar will occur, increasing inefficiency.
A surplus of sugar will occur, decreasing inefficiency.
A shortage of sugar will occur, decreasing inefficiency.
A surplus of sugar will occur, increasing inefficiency.
vhegg The company that you manage has invested $5 million in developing a new product, but the development is not quite finished. At a recent meeting, your salespeople report that the introduction of competing products has reduced the expected sales of your new product to $3 million. If it would cost $1 million to finish development and make the product, youshould go ahead and do so. The most you should pay to complete development is $2.0 million.
Answer:
Yes; $2.0 million
Explanation:
Yes, YOU SHOULD GO AHEAD and do so reason been that the TOTAL LOSS would then be the amount of $3 million calculated as [( -$5million)+(-$1 million)+$3 million=-$3 million] instead of the amount of $5 million which therefore means that The MOST YOU SHOULD PAY in order to complete the development would be the amount of $2 million calculated as ($5 Million-$3 Million).
Give your opinion based upon the numbers as to whether production seems to be budgeted properly, and whether the corporation can make an adequate profit above breakeven levels
Answer:
The production level needs to be budgeted accurately as this is the main strategy which is essential for the success of the business. The corporation cannot make adequate on the breakeven level as this is no profit, no loss situation.
Explanation:
The production level is the basis for sales. If the production level is not accurately estimated then there will be over of under production problems to the business. The over production will result in excess cost to the company and under production will result in lesser profit and sales. The breakeven level is the no profit no loss situation. This is the situation where company earns money equal to its cost and expenses and nothing is saved by the company as profit.
Three roads lead into a stadium's parking areas. Each road has four lanes (two in each direction) with a capacity of 1,000 vehicles/lane/hour. If 10,000 vehicles are expected for a game, how long will it take for all of them to enter the parking areas?
Answer:
Option A
Explanation:
The complete question is
Three roads lead into a stadium's parking areas. Each road has four lanes (two in each direction) with a capacity of 1,000 vehicles/lane/hour. If 10,000 vehicles are expected for a game, how long will it take for all of them to enter the parking areas?
a) 2 hours
b) 1 hour
c) 1 hour and 40 minutes
d) 90 minutes
Solution
There are four lanes.
Capacity of one lane is equal to 1,000 vehicles/lane/hour.
Let us say that each lane will provide access to equal number of vehicles
Thus, each lane will allow 10,000/4 = 2500 vehicles per hour
Time taken by 2500 vehicles on road to reach parking is equal to 2.5 hours.
The nearest answer to this option A i.e two hours
what is the best way for a certifying officer to prevent pecuniary liability?
By only certifying travel documents that are legal, proper, and correct.
the following materials standards have been established for a particular product: standard quantity per unit of output 3.0 grams standard price $13.00 per grams the following data pertain to operations concerning the product for the last month: actual materials purchased 1,800 grams actual cost of materials purchased $ 20,970 actual materials used in production 1,100 grams actual output 340 units the direct materials purchases variance is computed when the materials are purchased.
In the following question, among the conditions given, The direct materials purchases variance is computed when the materials are purchased.
What is a direct material, Direct materials are raw materials that are used to make a product. Direct materials can be seen in the final product and can be conveniently traced to it. In contrast to indirect materials, which are either necessary for the production process but do not feature in the final product or are too small to be traced, direct materials are used in the production of the final product.
A direct materials purchases variance is the difference between the actual cost of raw materials bought for production and the anticipated or budgeted cost of raw materials. It is the cost that the company pays for materials rather than the anticipated cost. The formula for calculating direct material purchases variance:
Direct material purchases variance = (actual quantity of material purchased x actual price) - (standard price x standard quantity of materials)The direct material purchases variance is computed when the materials are purchased.
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