The key financial statements that are impacted as costs accumulate on a job until completion include the income statement, balance sheet, and cash flow statement.
The income statement is impacted as the costs incurred on the job are recorded as expenses, reducing the company's net income.
The balance sheet is impacted as the costs incurred on the job are recorded as assets until the job is completed and then transferred to expenses on the income statement. Finally, the cash flow statement is impacted as cash is used to pay for the costs incurred on the job, reducing the company's cash balance.
In summary, the initiation of a job impacts the financial statements of a company as costs accumulate until completion. This can affect the income statement, balance sheet, and cash flow statement as expenses are recorded, assets are transferred, and cash is used to pay for the job costs.
It is important for companies to monitor and track these financial statements throughout the job process to ensure profitability and financial stability.
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the hyperinflation in zimbabwe ended in april 2009 when the central bank purchased government bonds in open-market operations. a. true b. false
The central bank buys bonds if it wants to lower interest rates. The money supply is increased when money is injected into the money market by purchasing bonds.
By selling bonds, the central bank removes money from the money market and reduces the money supply when it wants interest rates to rise.
What are the banking system's reserves when the Fed purchases government bonds?3) Because there was no checkable deposit created, reserves and excess reserves both rise when the Fed purchases bonds from bankers.
When the Fed makes an open market buy?When the Federal Reserve purchases something from the open market, the Fed: purchases securities from public banks, thereby reducing the money supply. sells securities to banks and the general public, reducing the amount of money in circulation. purchases securities from public banks, thereby expanding the money supply.
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if a sales-person is working on commission and they have a very unappealing product to sell, but the commission rate is quite high, what does expectancy theory say about their likely level of motivation?
Expectancy theory predicts that a salesperson working on commission with a very unappealing product to sell but a high commission rate will likely be motivated to perform well in order to receive something they value.
What exactly is expectancy theory?Expectancy theory is a thought process that emphasizes personal preference and the selection process. An outline of the process that people go through when making decisions is given by expectancy theory. These options could include decisions for daily living, academic pursuits, or recreational activities.
These people base their decisions on expectations of how those decisions will turn out. We frequently make clothing choices based on what will make us feel comfortable and ready for the day's events. We must put on a rain jacket on a wet day. We frequently require a full breakfast when we have a busy day ahead.
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Come up with a creative company name and describe a situation in which you are the accountant/owner for a company. Decide if your company will be a service or merchandising business and describe the goods or services that the company will be selling. State your depreciation and any other (if applicable) accounting policies. Make the assumption that the company has just started (Knowledge/Understanding)
b) Create at least 15 - 20 general business transactions of the company for the first quarter. Transactions should be formatted similar to textbook transactions. Include transactions that involve acquiring assets, liabilities, capital, drawings, revenue, expenses and adjusting entries. The transactions should be specific and should reflect as much as possible the
Part A: The company is called FinServ Solutions and it offers financial consulting services.
Part B: Transactions include investments, expenses, revenue from services, and purchases of equipment andsupplies.
Company Name - FinServ Solutions
Situation - As the owner and accountant of FinServ Solutions, a service-based business, we provide comprehensive financial consulting services to small and medium-sized enterprises.
First Quarter Transactions -
January 1: Invested $50,000 cash to start the business.
January 5: Paid $2,000 for office rent for the month.
January 10: Purchased office equipment for $8,000 cash.
January 15: Provided financial planning services to a client and received $3,500 cash.
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True/False: the classic s-curve is a plot of cumulative cost versus elapsed time in weeks.
False. The classic S-curve is a plot of cumulative cost (or work) versus the percentage of total project duration. The S-curve gets its name from the shape it takes, which resembles the letter S.
It typically starts out slow, then accelerates in the middle as work progresses and peaks, and then slows down again towards the end of the project. The S-curve is commonly used in project management to track progress and compare actual performance against planned performance.
By analyzing the S-curve, project managers can identify potential problems, adjust schedules, and make informed decisions to ensure the successful completion of the project.
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Mr. and Mrs. Lund and their two children (Ben and June) are the four equal partners in LBJ Partnership. This year, LBJ generated $64,000 ordinary income. Compute the tax cost for the business if Mr. and Ms. Lund’s marginal rate is 32 percent, Ben’s marginal rate is 24 percent, and June’s marginal rate is 12 percent. (Ignore SE tax consequences.)
To compute the tax cost for LBJ Partnership, we need to calculate the tax liability for each partner based on their respective marginal tax rates.
Given the following marginal tax rates:
Mr. and Mrs. Lund: 32%
Ben: 24%
June: 12%
And assuming that the $64,000 ordinary income of LBJ Partnership is evenly distributed among the four partners, the tax cost for the business would be as follows:
Mr. and Mrs. Lund's tax liability: $64,000 * 32% = $20,480
Ben's tax liability: $64,000 * 24% = $15,360
June's tax liability: $64,000 * 12% = $7,680
The total tax cost for LBJ Partnership would be the sum of the tax liabilities of all four partners, which is $20,480 + $15,360 + $7,680 + $7,680 = $51,200.
It's important to note that this calculation does not take into consideration any other factors such as deductions, credits, or other tax implications, and the actual tax liability may vary depending on the individual circumstances of each partner. Therefore, it's always recommended to consult with a qualified tax professional for accurate and up-to-date tax advice.
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According to low estimates, we see advertisements every _____ minutes.
Answer:
4
Explanation:
Its every 4 mins we see ads
when determining whether or not to engage in a business in a foreign country, analysts should consider that future economic growth rates within any country are a function of both ____________ and ___________
When determining whether or not to engage in a business in a foreign country, analysts should consider that future economic growth rates within any country are a function of both a country's capacity for growth and a free market system.
Economic growth interprets an increase in the pile and status of the financial merchandise and aids that a society produces and consumes. While the description of financial progress is simple, it is intensely troublesome to measure it. Economic growth increases the state's ability and the supply of public merchandise.
A free market is an individual place with voluntary exchange and the regulations of supply and demand supply the alone base for the financial method, outside administration attack. A key feature of free markets is the omission of pressed (strained) undertakings or environments on transactions.
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For all the_____the new CEO has received from the press recently, her staff have a decidedly less rosy view of her.
Answer: encomium/tribute
Explanation:
For all the encomium the new CEO has received from the press recently, her staff have a decidedly less rosy view of her.
One who is showered with encomium or tribute or praise simply means that the boss had been spoken of in high regards and acknowledged for doing something great.
Answer:
A. encomiums
B. tributes
Explanation:
When it is said that someone has a decidedly less rosy view of someone else, it means that they do not like their character or personality.
The new CEO's staff had such a view of her which would imply that they find her character to be somewhat lacking. The sentence was structured in such a way that their views were the opposite of that of the press which would mean that the missing word has something to do with a favorably view of the CEO's character.
Those words could either be encomiums which mean praises or tributes which is essentially the same as encomium.
A football team receives $258,000 in sponsorship for equipment, and the administrative costs are expected to be $27,000. What are the costs as a percentage of sponsorship revenue?
Based on the calculation below, costs as a percentage of sponsorship revenue is 10.47%.
How to calculate costs as a percentage of revenue?The costs as a percentage of sponsorship revenue can be calculated using the following formula:
Costs as a percentage of sponsorship revenue = (Expected administrative costs / Sponsorship revenue) * 100 …………………………….. (1)
Substitute the relevant values into equation (1), we have:
Costs as a percentage of sponsorship revenue = ($27,000 / $258,000) * 100
Costs as a percentage of sponsorship revenue = 0.104651162790698 * 100
Costs as a percentage of sponsorship revenue = 10.47%
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At December 31, Tremble Music had account balances in Accounts Receivable of $300,000 and in Allowance for Uncollectible Accounts of $1,000 (credit) before any adjustments. An analysis of Tremble's December 31 accounts receivable suggests that 5% of the account balances are not expected to be collected. The balance of Allowance for Uncollectible Accounts after adjustment will be:
Answer:
$15,000.
Explanation:
So, in this particular question we are given the following parameters or data or information which is going aid us in solving the problem;
=> "At December 31, Tremble Music had account balances in Accounts Receivable of $300,000 "
=>" At December 31, Tremble Music had account balances in Allowance for Uncollectible Accounts of $1,000 (credit) before any adjustments"
=> "An analysis of Tremble's December 31 accounts receivable suggests that 5% of the account balances are not expected to be collected"
So, looking at the third point from the question above, we see that "accounts receivable suggests that 5% of the account balances", thus, we have that;
$300,000, which is the account receivable multiply by 5%. That is;
$300,000 × 5/100 = $15,000.
QUESTION TWO [30] You are currently auditing the revenue and receipts cycle of The Hardware Store (Pty) Ltd. Sales are mainly on credit as the clientele of the business are big building contractors who prefer to keep an account which they settle on a monthly basis. During the audit you became aware of the fact that the management of the company wants to pay as little income tax as possible. You realize that the risk of understatement of sales is high as management wants to keep profits low. Required: 2.1. Describe completeness as an assertion in financial information and explain why the completeness assertion will be the biggest assertion at risk with the understatement of sales. (5) 2.2. Describe the appropriate substantive procedures you will perform to audit the credit sales of the company at year end. (15) 2.3. Describe the procedures you will follow to perform a positive debtors circularization as part of the audit of trade receivables. (10)
2.1. Completeness is an assertion in financial information that states that all transactions and events that should have been recorded and disclosed have been included. In the context of understatement of sales, the completeness assertion is at risk because management may intentionally omit or understate sales transactions to reduce reported profits and income tax liability.
The understatement of sales can be motivated by the desire to pay lower income tax by manipulating the financial statements. By not recording or understating sales, the company can reduce its reported revenue, resulting in lower taxable income and subsequently lower income tax payments.
Since sales are mainly on credit and settled on a monthly basis, there is a higher risk of understatement of sales because the transactions may not be recorded in the appropriate period, or some sales may be deliberately omitted from the records. As a result, the completeness assertion is at risk because not all sales transactions may be captured, potentially leading to a material misstatement in the financial statements.
2.2. To audit the credit sales of the company at year-end and mitigate the risk of understatement, several substantive procedures can be performed. These procedures include:
- Performing analytical procedures: Conducting a thorough analysis of sales trends, comparing current year sales figures with prior years, and assessing the reasonableness of sales growth or decline. Any significant fluctuations or anomalies can be investigated further.
- Testing sales cutoff: Reviewing sales transactions near the year-end to ensure they are recorded in the correct accounting period. This includes examining shipping documents, sales invoices, and related records to verify that sales are properly recognized in the correct period.
- Performing sales invoice testing: Selecting a sample of sales invoices and reconciling them to supporting documents such as shipping records, customer orders, and credit approvals. This helps verify the accuracy and completeness of recorded sales.
- Reviewing sales contracts and agreements: Examining contracts and agreements with major customers to ensure the terms and conditions align with the recorded sales. This helps identify any potential side agreements or off-book sales that may indicate understatement.
- Performing sales ledger reconciliation: Reconciling the sales ledger to the general ledger to ensure the completeness and accuracy of recorded sales. Any discrepancies or unrecorded sales can be identified and investigated.
2.3. To perform a positive debtors circularization as part of the audit of trade receivables, the following procedures can be followed:
- Selecting a sample: Determine an appropriate sample size of customer accounts to be included in the circularization. The selection should be representative and include a mix of high-value and low-value accounts.
- Preparing confirmation letters: Prepare standard confirmation letters addressed to the selected customers, requesting them to verify the balance of their account as of the audit date. The letter should include relevant details such as the account balance, terms, and instructions for responding.
- Sending the confirmation letters: Dispatch the confirmation letters to the customers either directly or through a third-party service provider. Maintain control and ensure the letters are sent securely and independently from the company's management.
- Following up on non-responses: Monitor the responses received from customers and follow up on any non-responses or discrepancies. This may involve contacting the customers directly through phone calls or emails to obtain the necessary confirmation.
- Verifying responses: Compare the responses received from customers with the recorded balances in the company's books. Investigate any significant differences or inconsistencies and reconcile the discrepancies.
- Evaluating the results: Assess the overall response rate, the accuracy of the responses, and any discrepancies found. Consider the implications of non-responses or discrepancies on the reliability of the trade receivables balance and determine appropriate audit adjustments if necessary.
Performing a positive debtors circularization provides independent and external verification of the trade receivables balance, confirming the existence and accuracy of the amounts owed by customers.
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what are some choices you have made/could make that would influence your future choices and options?
i rly need someone's help asap, thanks in advance! (not business, it's career ed. just chose the subject closest to it).
Answer:
I would have good company.
I would ensure that I have good communication skills.
I would have a mentor in my choice of career/study or life in general.
I would have a personal relationship with God.
Explanation:
In order for me to influence my future choices positively,I have to uphold certain principles or values like honesty,open mindedness and tolerance so as to achieve my goals.
When comparing short-run average total cost with long-run average total cost at a given level of output, a. short-run average total cost is typically below long-run average total cost. b. short-run average total cost is typically the same as long-run average total cost. c. short-run average total cost is typically above long-run average total cost. d. the relationship between short-run and long-run average total cost follows no clear pattern.
Answer:
c. short-run average total cost is typically above long-run average total cost
Explanation:
In the case when the average of the total cost of the short run should be compared with the average of the total cost of the long run for a given output level so this means that the average of the total cost of the short run should be more than the average of the total cost of the long run
Therefore as per the given situation, the option c is considered
Eliza Conner owns a small clothing boutique. Eliza uses her personal checking account for both business and personal needs. How would you convince Eliza that she should open a separate
bank account for her business?
Answer:
1. It will cause them confusion throughout the tax calculating process.
2. Using a single account will make it difficult to keep payroll records.
3. Keep track of your personal expenses and earnings.
Explanation:
1. It is preferable to establish a separate account to separate the firm's actual income and expenses.
2. Payroll expenses are indistinguishable from personal expenses.
3. This allows you to cross-check bank and hand-made documents for income and expenses. Because cash transactions may not be recorded in the bank account, the entrepreneur should preserve receipts in order to compute revenue and expenses, which may result in erroneous financial statements.
How important is money
Answer:
very important
Explanation:
money is a global income source for everyone. we all have different types but it is all still money. now say one country got rid of money and had people pay for stuff using other things. if china did that lots of different countries wouldn't be able to get stuff from there unless they had so much of that product they could just give it up.
Comments allow you to make suggestions without changing the contents of a document.
T or F
What does the phrase "like animals escaped from their caves" imply about the sun's impact on the children?
explain the importance of establishing a position in a chosen market for opening a gas station• segment a target market• identify the elements of a marketing plan• assess methods of using social media to develop a market presence for gas station business
Establishing a position in a chosen market is important for opening a gas station because it helps to ensure that there is a demand for the business and a need for the products and services that will be offered. This is critical because, without a demand for the business, the company may not be profitable.
Segmenting a target market is important because it helps the gas station to understand who its customers are and what they want.
By dividing the market into segments, the company can create targeted marketing campaigns that are tailored to the needs of each group.
Identifying the elements of a marketing plan is also important because it helps the gas station to create a roadmap for success.
This includes understanding the company's mission and goals, identifying the target market, developing a marketing mix, and creating a budget.
Assessing methods of using social media to develop a market presence for a gas station business is important because it allows the company to connect with customers in real time, develop relationships, and build brand awareness.
This includes creating a social media strategy, identifying the best social media platforms for the company, creating content that engages customers, and analyzing the results to make improvements.
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Question 17 of 20
Trey's bank raises the interest rate on his line of credit without providing an
explanation. Which consumer protection law has his bank violated?
Trey's bank raises the interest rate on his line of credit without providing an
explanation. The consumer protection law that his bank violated is: "The Truth in Lending Act of 1968".
What are consumer protection laws?The Truth in Lending Act of 1968 is a federal law in the United States aiming to encourage the informed use of consumer credit by requiring disclosures about its terms and prices to standardize the method in which borrowing expenses are computed and communicated.
Consumer protection laws protect consumers from faulty products and deceptive or fraudulent company activities.
It is to be noted that in the United States, a range of federal and state laws govern consumer affairs. The Federal Food, Drug, and Cosmetic Act, the Fair Debt Collection Practices Act, the Fair Credit Reporting Act, the Truth in Lending Act, the Fair Credit Billing Act, and the Gramm-Leach-Bliley Act are a few examples.
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Answer:
Credit Card Accountability, Responsability, and Disclosure Act
Explanation:
belmont corp is considering the purchase of a new piece of equipment. the annual cost savings from the equipment would be $200,000 the equipment will have an initial cost of $1,000,000 and have an 20 year life. if there is no salvage value of the equipment, what is the simple rate of return?
If there is no equipment salvage value, the simple return rate is 20%.
What is a simple return rate?
The initial investment value is subtracted from the investment's current value, and the result is divided by the original investment value to determine a simple rate of return. The result is multiplied by 100 to be reported as a percentage.
The initial investment value is subtracted from the investment's current value, and the result is divided by the original investment value to determine a simple rate of return. The result is multiplied by 100 to be reported as a percentage.
What is equipment salvage value?
The estimated value of an asset when it is no longer useful to your company is known as salvage value.
For instance, if a company's machinery has a lifespan of five years but only has a worth of $5,000 at the conclusion of that time, the salvage value is $5,000.
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Explain the documentation/substantiation requirements for tax returns, with reference to relevant sections of the ITAA
The documentation/substantiation requirements for tax returns refer to the need to provide evidence of the income and deductions claimed in the tax return. In Australia, these requirements are set out in various sections of the Income Tax Assessment Act 1997 (ITAA). Section 262A of the ITAA requires taxpayers to keep records of all transactions and acts that may be relevant to their income tax affairs.
These records should be in writing and kept for at least five years. The records should include details such as Receipts, invoices, and other documents that prove the taxpayer's income and expenses for the relevant year; Bank statements and other financial records; and details of any assets bought or sold during the year. Section 900-15 of the ITAA requires that taxpayers keep records of all deductions claimed in their tax returns.
These records should show: That the expenses were actually incurred; That the expenses were incurred in the course of earning assessable income; and the amount of the expenses claimed. Section 900-120 of the ITAA sets out the substantiation rules for specific deductions. For example, if a taxpayer claims work-related expenses, they must keep a record of all expenses over $300. If the total claim is less than $300, the taxpayer can use a reasonable estimate instead of actual receipts.
Taxpayers who fail to keep the necessary records risk being unable to substantiate their claims in the event of an audit. This could lead to penalties and additional taxes being levied by the Australian Taxation Office (ATO).
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How do objectives make it more likely that you will reach your goals?
.A.Objectives are based on others' experiences.
.B.Objectives provide a step-by-step path to success.
.C.Objectives are the best way to assess your interests.
.D.Objectives help guide your career choices.
Answer:B.Objectives provide a step-by-step path to success.
Explanation:
Which of the following statements is TRUE of the relationship conflicts in a highly cohesive team?
Question options:
A)Relationship conflict is suppressed when the conflict occurs.
B)Relationship conflicts tend to be more frequent because of the high cohesion.
C)Relationship conflict is absent in such teams.
D)Mediation is needed to resolve relationship conflicts among team members.
The statement "Relationship conflicts tend to be more frequent because of the high cohesion" is true out of the given statements. Option B is correct.
When a team is highly cohesive, members tend to have strong emotional bonds and connections, which can lead to conflicts in their personal relationships. This is because people are more likely to express their true feelings and opinions in a cohesive group, which can sometimes lead to disagreements and conflicts. However, it is important for the team to address and resolve these conflicts in a constructive manner to maintain their high level of cohesion.
Option B is correct.
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Do you feel that this country has made adequate progress in providing women with rights that are equal to that of men? Explain your answer.
Answer:
Yes.
Explanation:
There are so many opportunities for women to rise to the level of, if not surpass men. The 70 cents to the dollar thing is entirely false, and when accounting for the field and position, women typically make more than men. For single mothers, there is the WIC program (women, infants and children), but can you name a program that specifically supports single fathers? And, somewhat related sidenote, there is the whole "believe all women movement", (which in itself is sexist, but I yield) could you imagine if someone started saying "believe all men"? There is no way that would go over well.
What is the difference between irregulars and seconds?
Answer: Have minor flaws that are not noticeable. Seconds: Have noticeable flaws, such as holes
Explanation:
Police are investigating the site of a convenience store robbery. The glass door was
broken, and it looks as if several packages of cigarettes are missing from behind the
counter. One police officer notices a man walking past the store and gets an odd
feeling about him. He stops the man and insists on searching his pockets. Inside the
man's pockets, police find several packs of cigarettes. They arrest the man and
charge him with the crime. Unfortunately, the judge throws out the charges. What is
MOST likely the judge's reason for dismissal?
A-The man is under 18 years old.
B-The man did not have money to post bail.
C-The policeman did not have probable cause to search the man.
D-The policeman did not have enough evidence that the man was the robber.
The MOST likely judge's reason for dismissal is the policeman did not have enough evidence that the man was the robber. Thus the correct option is D.
What is Robbery?Theft or robbery is defined as the stealing of someone else's property without their permission and using force or a threat of force that exhibits fear in them to perform any action against them.
To prove a crime against someone requires one to submit enough evidence which helps to establish the claim as the justice system is based on evidence not on arguments.
In the given case, police found the activity of the men suspicious as they found cigarette packets from him. There is no evidence that he has stolen the cigarette packets might be possible he has purchased them.
So due to a lack of evidence against the person the Judge dismissal the case. Therefore, option D is appropriate.
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A principle offers broad goals while leaving human beings in charge. True False Which of the following is an example of saving? Putting money into a savings account Putting money into a checking account Money that you use to pay your taxes All of the above. Which sector is the most stable sector in the economy? Consumption. Business. Government. Foreign. Which of the following is a false statement? Austrian economists criticize the Full Employment and Balanced Growth Act of 1978 The Employment Act of 1946 empowered the federal govemment to pursue mocimum employment, production, and purchasing power Expansions and recessions occur at irregular intervals and last for varyigg lengths of time. Austrian cconomists believe that we can climinate the business cycle.
The statement "A principle offers broad goals while leaving human beings in charge" is True.Savings refers to a fund which is kept aside by an individual for later use. An example of saving is putting money into a savings account.The government sector is the most stable sector in the economy.
A principle is a broad, and general statement that offers a direction for an organization or an individual, it leaves the individual or an organization to determine the exact way to achieve the principle by themselves. Thus, it is true that a principle offers broad goals while leaving human beings in charge. Savings are typically funds that are kept aside for future use, rather than immediate use. Putting money into a savings account is an example of saving.
This is because the government has the power to raise taxes or borrow money in order to pay for its expenses, unlike individuals and businesses. In addition, government employees are typically paid a fixed salary, regardless of the state of the economy. Austrian economists believe that it is impossible to eliminate the business cycle. This is a false statement.
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Explain the changes in economic systems and labor systems from 1450 to 1750. (Unit 4.4)
Despite the influence of European powers, economic systems like the Indian Ocean Trade Network and the Mit'a System mostly remained unchanged from 1450 to 1750.
However, Europeans also brought new types of labour to the Americas, notably the Hacienda System and chattel slavery.
Existing trade networks in the Indian Ocean continued to thrive and included intra-Asian trade and Asian merchants (such Swahili Arabs and Omanis), despite considerable disruption and reorganisation brought on by the advent of Portuguese, Spanish, and Dutch merchants.
In the Americas, newly established colonial economies relied heavily on agriculture and made use of pre-existing labour arrangements.
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(ANSWER PROVIDED) Under what circumstances would it be appropriate and legal to turn down a qualified job candidate based on a disability?
done
A.
When required accommodations would be very expensive or difficult to provide
close
B.
It is never appropriate or legal to turn a job applicant down because of a disability.
C.
When a disability makes it difficult to use a standard telephone
D.
When the disabled individual is either blind or deaf
*
*
ANSWER: A. When required accommodations would be very expensive or difficult to provide
Under the circumstances that would be appropriate and legal to turn down a qualified job candidate based on a disability is:A. When required accommodations would be very expensive or difficult to provide.
What is disability?Disability occur when a part or some part of a person body is not functioning or not functioning properly. Example of disability is when a person cannot see, cannot hear, cannot walk which inturn tend to make it difficult for the person to engage in some certain activities that non disability people can do.
A qualified job candidate who is disabled may be legally turn down when the employer does not have required capacity to accommodate the person or when the accommodations would be very expensive or difficult to provide.
Therefore the correct option is A.
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Answer: A
Explanation: I j took test
Suppose you are the owner of a small t-shirt printing business. While conducting a cost analysis of your business you find out that at current production levels, your average total costs (ATC) are $10. You also know that if you increase production by one more unit the marginal cost of that unit will be $5. Since you are taking a course in economics this semester, you also know that if you produce another t-shirt:a) the marginal costs of production will increase
b) the marginal costs of production will decrease
c) the average total costs of production will increase
d) the average total costs of production will decrease
When the owner of a small t-shirt printing business produces another t-shirt, the average total costs of production will decrease. The correct option is d) the average total costs of production will decrease.
The average total cost (ATC) is the total cost of production divided by the quantity of goods produced in a given period. ATC is the sum of all costs divided by the total number of units of output. It comprises fixed and variable costs of production. Marginal cost (MC) is the cost of producing one more unit of a good. It is calculated by subtracting the total cost of producing one level of output from the total cost of producing one more unit.
Marginal cost (MC) is the change in total cost as a result of producing one additional unit of output .What happens to ATC and MC When production levels increase, the marginal cost of production decreases up to a certain point, and the average total cost of production decreases.
Marginal cost, on the other hand, starts to rise when production levels continue to rise beyond that point. After that point, the cost per unit increases as a result of the marginal cost of producing one more unit increasing. When production is at its maximum point, the marginal cost will equal the average total cost of production (ATC).
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