Just-In-Time (JIT) manufacturing is a system that calls for sub-assemblies and components to be manufactured in very small lots and delivered to the next stage of the production process as they are needed and in the quantity required.
The system you are referring to is called Just-In-Time (JIT) manufacturing. JIT is a lean production method that involves producing goods or services only when they are needed and in the quantity required. This means that sub-assemblies and components are manufactured in small lots and delivered to the next stage of the production process just in time for their use, rather than being stockpiled in inventory.
The primary goal of JIT is to eliminate waste and improve efficiency by reducing the amount of inventory and work in progress. This is achieved by synchronizing production with customer demand, optimizing the flow of materials and information, and continuously improving the manufacturing process.
Implementing JIT requires close collaboration between suppliers, manufacturers, and customers to ensure timely delivery and quality control. The benefits of JIT include reduced costs, increased productivity, improved quality, and faster response to changing customer needs. However, it also requires careful planning and management to minimize risks and avoid disruptions in the supply chain.
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The income statement, balance sheet and additional information for Video Phones Inc. are provided.
VIDEO PHONES INC.
Income Statement
For the Year Ended December 31, 2015
Net sales $3,436,000
Expenses:
Cost of goods sold $ 2,250,000 Operating expenses 918,000 Depreciation expense 33,000 Loss on sale of land 8,600 Interest expense 18,000 Income tax expense 54,000 Total expenses 3,281,600
Net income $154,400
VIDEO PHONES INC.
Balance Sheet
December 31
2015 2014
Assets
Current assets:
Cash $267,160 $194,280
Accounts receivable 87,600 66,000
Inventory 105,000 141,000
Prepaid rent 13,440 6,720
Long-term assets:
Investments 111,000 0
Land 216,000 252,000
Equipment 282,000 216,000
Accumulated depreciation (76,200) (43,200)
Total assets $1,006,000 $832,800
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $71,400 $87,000
Interest payable 6,600 11,200
Income tax payable 15,600 14,600
Long-term liabilities:
Notes payable 297,000 231,000
Stockholders' equity:
Common stock 360,000 360,000
Retained earnings 255,400 129,000
Total liabilities and stockholders' equity $1,006,000 $832,800
Additional Information for 2015:
1. Purchase investment in bonds for $111,000.
2. Sell land costing $36,000 for only $27,400, resulting in a $8,600 loss on sale of land.
3. Purchase $66,000 in equipment by borrowing $66,000 with a note payable due in three years. No cash is exchanged in the transaction.
4. Declare and pay a cash dividend of $28,000.
Required:
Prepare the statement of cash flows for Video Phones Inc. using the direct method.
Disclose any non-cash transactions in an accompanying note.
The statement of cash flows for Video Phones Inc. for the year ended December 31, 2015, using the direct method, shows a net increase in cash of $190,880. The company had cash of $194,280 at the beginning of the year, and the cash balance at the end of the year reached $385,160.
To prepare the statement of cash flows using the direct method for Video Phones Inc., we need to analyze the provided information and categorize the cash flows into three sections: operating activities, investing activities, and financing activities. Let's go through each section:
Operating Activities:
Cash flows from operating activities are derived from the company's primary business operations. We can calculate the net cash provided/used by operating activities by adjusting the net income for changes in current assets and liabilities.
Net income $154,400
Adjustments for non-cash items:
Depreciation expense $33,000
Loss on sale of land $8,600
Changes in current assets:
Increase in accounts receivable $(21,600) [($87,600 - $66,000)]
Decrease in inventory $36,000 [($105,000 - $141,000)]
Increase in prepaid rent $(6,720) [($13,440 - $6,720)]
Changes in current liabilities:
Decrease in accounts payable $(15,600) [($71,400 - $87,000)]
Decrease in interest payable $(4,600) [($6,600 - $11,200)]
Increase in income tax payable $1,000 [($15,600 - $14,600)]
Net cash provided by operating activities = $235,480
Investing Activities:
Cash flows from investing activities reflect changes in long-term assets and investments.
Purchase of investments in bonds $(111,000)
Sale of land $27,400
Net cash used in investing activities = $(83,600)
Financing Activities:
Cash flows from financing activities involve changes in long-term liabilities and stockholders' equity.
Borrowing through notes payable $66,000
Payment of cash dividend $(28,000)
Net cash provided by financing activities = $38,000
Overall change in cash = $235,480 - $83,600 + $38,000 = $190,880
Cash at the beginning of the year (2015) = $194,280
Cash at the end of the year (2015) = $194,280 + $190,880 = $385,160
The statement of cash flows for Video Phones Inc. for the year ended December 31, 2015, using the direct method, would be as follows:
VIDEO PHONES INC.
Statement of Cash Flows
For the Year Ended December 31, 2015
Cash flows from operating activities:
Net income $154,400
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense $33,000
Loss on sale of land $8,600
Changes in operating assets and liabilities:
Decrease in accounts receivable $(21,600)
Decrease in inventory $36,000
Increase in prepaid rent $(6,720)
Decrease in accounts payable $(15,600)
Decrease in interest payable $(4,600)
Increase in income tax payable $1,000
Net cash provided by operating activities $235,480
Cash flows from investing activities:
Purchase of investments in bonds $(111,000)
Sale of land $27,400
Net cash used in investing activities $(83,600)
Cash flows from financing activities:
Borrowing through notes payable $66,000
Payment of cash dividend $(28,000)
Net cash provided by financing activities $38,000
Net increase in cash $190,880
Cash at the beginning of the year $194,280
Cash at the end of the year $385,160
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One of the main reasons it has been considered risky to conduct business in the Middle East is: A. Political instability B. Lack of natural resources C. Cultural differences D. High taxes
The main reason it has been considered risky to conduct business in the Middle East is political instability. With ongoing conflicts and changes in leadership, there is a high level of uncertainty and the potential for disruptions to business operations.
Cultural differences and high taxes may also contribute to the risk factor, but they are not as significant as the political instability that plagues the region. Lack of natural resources is not a significant factor as the Middle East is rich in oil and other valuable resources.
One of the main reasons it has been considered risky to conduct business in the Middle East is A. Political instability. This factor can lead to an unpredictable business environment and pose challenges for companies operating in the region.
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The main reason it has been considered risky to conduct business in the Middle East is political instability. With ongoing conflicts and changes in leadership, there is a high level of uncertainty and the potential for disruptions to business operations.
Cultural differences and high taxes may also contribute to the risk factor, but they are not as significant as the political instability that plagues the region. The lack of natural resources is not a significant factor as the Middle East is rich in oil and other valuable resources.
One of the main reasons it has been considered risky to conduct business in the Middle East is A. Political instability. This factor can lead to an unpredictable business environment and pose challenges for companies operating in the region.
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what is most likely to reveal a market opportunity for a specific product application?
The products or services developed to satisfy a consumer or market need. Consumer insight research provides more than just information about who and what your customers are.
Knowing the target market can easily help you identify a group of possible customers who are interested in, ready to buy, and able to afford your goods. After a buyer has the desire, means, and willingness to buy the product, there is a demand.
By making something more inexpensive, you can raise demand by lowering prices, but you can only generate demand from a customer's desire that already exists.
Several factors determine whether a good's demand increases or decreases. This includes the price of the goods, the perceived quality, the marketing budget, the buyer's income and confidence, and changes in consumer tastes and fashion.
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what are common characteristics of founders of successful start-ups? (select all that apply.)
The common characteristics of founders of successful start-ups include the following: Passion for their ideas and persistence despite setbacks. 2. Creativity and innovative thinking. 3. Risk-taking. 4. Flexibility and adaptability. 5. Hard work and perseverance. 6. Leadership and team-building skills.
The common characteristics of founders of successful start-ups include the following:1. Passion for their ideas and persistence despite setbacks: Passion and persistence are essential traits for entrepreneurs. They help entrepreneurs navigate difficult times and see their vision through to completion. They are unyielding in their desire to succeed and are always willing to try new things.
2. Creativity and innovative thinking: Successful entrepreneurs are creative and innovative thinkers who think outside the box. They are constantly seeking new ways to solve problems, improve processes, and create new products or services.
3. Risk-taking: Entrepreneurs are willing to take risks and make bold decisions. They have the ability to make tough decisions quickly and take calculated risks to grow their businesses.
4. Flexibility and adaptability: Entrepreneurs are flexible and adaptable, able to change their strategies as the market evolves. They are not afraid to pivot when necessary, and they embrace change as an opportunity to grow.
5. Hard work and perseverance: Successful entrepreneurs are willing to put in long hours and hard work to achieve their goals. They persevere through difficult times and never give up on their vision.
6. Leadership and team-building skills: Entrepreneurs must be strong leaders who can inspire and motivate their teams. They have the ability to identify and hire the right people and build strong teams that can execute their vision.
Finally, these are common characteristics of founders of successful start-ups.
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Which of these facts about a region are most helpful in understanding the region's economy? (Select four answers.) Which of these facts about a region are most helpful in understanding the region's economy? (Select four answers.) The average age of the population is 35. The area has a major shipping port. The area's schools are named after politicians. There is a major city 50 miles away from the region. The area has warm weather and ocean beaches. One of the state's senators is from this region. The area's public libraries are named after native tribes from the region.
Answer:
The area has a major shipping port.
Explanation:
The statement above gives important economic information about the area. The fact that it has a major shipping port means that the economy of region likely revolves around the port, or that port is a significant part of the economy even if it is not the most important activity.
The shipping port likely makes the region an important trade center, because ports are essentially use to import and export goods, in other words, to trade goods.
ideas are: rivalrous. sometimes rivalrous and sometimes nonrivalrous. nonrivalrous. partly rivalrous.
The categorization of ideas as rivalrous or nonrivalrous depends on factors such as exclusivity, availability, and the ability of multiple parties to use the idea without diminishing its value or utility.
Ideas can be categorized as rivalrous, sometimes rivalrous and sometimes nonrivalrous, nonrivalrous, or partly rivalrous depending on the context in which they are used. Rivalrous ideas are those that can only be used by one person or organization at a time, and their use by one party prevents another party from using them. On the other hand, nonrivalrous ideas can be used by multiple parties simultaneously without any negative impact on their use or value. Sometimes, ideas can be partly rivalrous, meaning that some aspects of the idea are rivalrous while others are nonrivalrous. Ultimately, the categorization of ideas as rivalrous or nonrivalrous depends on factors such as exclusivity, availability, and the ability of multiple parties to use the idea without diminishing its value or utility.
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The wages of factory maintenance personnel would usually be considered to be: Indirect labor Manufacturing Overhead A. No Yes B. Yes No С. Yes Yes D. No No a. Option A b. Option B c. Option C d. Option D
Available choice C's "Manufacturing overhead cost" is the realistic solution. The term "manufacturing overhead" refers to the indirect expenses incurred by a corporation during its production process.
Do manufacturing overheads include indirect factory labor?
Manufacturing overhead, sometimes referred to as production overhead, factory overhead, or factory burden, is the collective term for all the supplemental expenses needed to run your firm. They could consist of: indirect labor, such as cleaning and maintenance staff
What are the components of indirect labor costs?
Wages paid to employees who carry out tasks that assist others in producing goods and rendering services are referred to as indirect labor costs. The cost of labor is the component that is not directly related to production.
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The role of the Federal Reserve Board of Governors is to:
A. loan money to multinational corporations.
B. set discount rates and reserve requirements.
O c. enforce monetary policy on Federal Reserve banks.
O D. establish new Federal Reserve districts.
The role of the Federal Reserve Board of Governors is to enforce monetary policy on Federal Reserve banks. Hence, Option C is correct.
What is monetary policy?In macroeconomics, there is a policy whose duty is to make sure that policies that are made by the Board of Governors have been applied to all the central banks. This policy is known as monetary policy, which manages the flow or supply of money to all the banks.
This policy also manages the interest rate. Just like other policies, monetary policy also has some tools, With the help of these tools, it is easy to manage the policy. Tools are named as operations for the open market, requirements of the reserve, and lastly rate of discount.
Therefore, Option C is correct.
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Some vendors supply special containers for broken and leaking batteries for transport
Some vendors provide the special containers for cracked and leakages batteries for transport. The given statement is False.
Who are vendors?An organization that contributes products or services is referred to as a vendor, supplier, provider, or seller in a supply chain. A distribution network vendor often produces inventory or stock products & sells them to the chain's next link.
Is a vendor a seller?Anyone who purchases and sells products or services is referred to as a vendor in general. A vendor purchases services and goods to offer them to another business or person. The products that large retailers like Target purchase at wholesale costs and resell at greater retail prices are supplied by a variety of different vendors.
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The complete question is -
Some vendors supply special containers for broken and leaking batteries for transport.
(A) True
(B) False
An international business is a firm that
Part 2
A. hires non-U.S. citizens.
B. produces a wide range of products.
C. is not from the United States.
D. engages in international trade or investment.
Option D: An international business is a firm that engages in international trade or investment.
Therefore, the correct answer is option D. An international business is a company that conducts business across national borders. This can include importing and exporting goods, investing in foreign markets, and operating in multiple countries.
It is not necessarily defined by the nationality of its employees, the range of products it produces, or the country in which it is headquartered. International business refers to the trade of goods, services, technology, capital and/or knowledge across national borders and at a global or transnational scale. It involves cross-border transactions of goods and services between two or more countries.
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to avoid developing conditions of worth, a person should ideally experience to avoid developing conditions of worth, a person should ideally experience existential optimism conditions of debt unconditional positive regard defensive pessimism
To avoid developing conditions of worth, a person should ideally experience unconditional positive regard.
Humanist psychologist Carl Rogers coined the phrase "unconditional positive regard" to characterize a strategy he employed in his non-directive, client-centered treatment.
Unconditional positive regard, in Rogers' view, entails extending a person's full support and approval regardless of what they say or do. No matter what the client says or does, the therapist accepts them and is there to assist them. This means that whether the client is exhibiting "good" behaviors or "bad" feelings, the therapist will still support them.
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Name the one sport in which neither the spectators nor the participants know the score or
the leader until the contest ends.
Answer:
Boxing
Explanation:
hello , What are three common tools for qualitative research in business and marketing?
Answer:
they would be in-depth interviews, focus group discussions and observation over data
Explanation:
Hope this helps, please rate and mark as brainlest :)
What are some positive and negative Impacts of globalization
Answer:
Globalization goal is 100% percent control of the people
Explanation:
Evidence of this is Charles Swab saying you will own nothing and be happy
When MB=300-12Q and TC=6Q+108, the optimal level of Q is:
The optimal level of Q is 12.25 and the optimal price is approximately $150.50.
To find the optimal level of Q, we need to find the quantity that maximizes profit. Profit (π) is equal to total revenue (TR) minus total cost (TC).
TR = P × Q, but we don't have a price function. However, we know that marginal revenue (MR) is equal to the change in total revenue from selling one more unit. In this case, MB is equal to MR because MB is the change in total revenue from selling one more unit.
So, we can use the marginal benefit (MB) function as the demand function: P = MB = 300 - 12Q.
Now we can write profit as:
π = TR - TC
π = (P × Q) - (6Q + 108)
π = (300Q - 12Q²) - (6Q + 108)
π = -12Q² + 294Q - 108
To find the optimal level of Q, we take the derivative of profit with respect to Q, set it equal to zero, and solve for Q:
dπ/dQ = -24Q + 294 = 0
-24Q = -294
Q = 12.25
So the optimal level of Q is 12.25. We can check this by plugging Q back into the profit function and confirming that it gives us a maximum:
π = -12(12.25)² + 294(12.25) - 108
π ≈ $1,794.06
We can also find the optimal price by plugging Q into the demand function:
P = 300 - 12Q
P = 300 - 12(12.25)
P ≈ $150.50
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federal income tax liability exempt meaning
Answer:
When you file as exempt from withholding with your employer for federal tax withholding, you don't make any federal income tax payments during the year. ... You owed no federal income tax in the prior tax year, and. You expect to owe no federal income tax in the current tax year.
Explanation:
*Which of the following was NOT a collective attempt of all or most Global South countries to advance their collective interests vis-à-vis the Global North.
Group of answer choices
A. The New International Economic Order.
B. The UN Conference on Trade and Development.
C. The Bandung Conference.
D. The New Global Partnership for Cooperation and Development
The option that was not a collective attempt of all or most Global South countries to advance their collective interests vis-à-vis the Global North is "The New Global Partnership for Cooperation and Development."
Global South is a term used to describe the economically backward countries of the world that are largely located in Asia, Africa, and Latin America. They are often referred to as the "Third World" or "developing nations."The following were collective attempts of all or most Global South countries to advance their collective interests vis-à-vis the Global North: The New International Economic Order (NIEO) was an attempt by the Group of 77 (G-77) developing nations to promote economic growth and reform the existing global economic system in the late 1960s and early 1970s.
The United Nations Conference on Trade and Development (UNCTAD) was created to promote the economic growth and development of the Global South in the late 1960s. The Bandung Conference was held in 1955 to promote cooperation between African and Asian countries and to address issues such as economic development, decolonization, and political sovereignty. Therefore, it is not included in the list of collective attempts of all or most Global South countries to advance their collective interests vis-à-vis the Global North.
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What does the concept of scarcity explain?choose three answers
The concept of scarcity explains:
why consumers are willing to pay high prices for items.why decisions must be made on how to use resourceswhy a single resource has more value than another resource.Scarcity as an economic idea "refers back to the basic reality of lifestyles that there exists most effective a finite quantity of human and nonhuman resources which the first-rate technical expertise is capable of the usage of to provide most effective restricted most amounts of each economic appropriate. shortage in economics refers to whilst the call for for a resource is greater than the deliver of that aid, as assets are limited. shortage consequences in purchasers having to make selections on how high-quality to allocate assets a good way to satisfy all simple needs and as many desires as feasible. shortage refers back to the confined availability of a useful resource in contrast to the infinite desires. shortage may be with appreciate to any natural assets or with admire to any scarce commodity. scarcity can also be called paucity of sources.
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Answer:
why consumers are willing to pay high prices for items.
why decisions must be made on how to use resources
why a single resource has more value than another resource.
Explanation:
why a product could lose significant value over time.
why people continue to purchase different products.
why consumers are willing to pay high prices for items.
why decisions must be made on how to use resources
why resources can be both renewable and nonrenewable.
why a single resource has more value than another resource.
(i took the test)
which action involves allocating ownership of the risk to another party?
The action that involves allocating ownership of the risk to another party is known as "risk transfer."
Risk transfer is a risk management strategy in which the responsibility for potential losses or damages is shifted from one party to another through contractual agreements or insurance mechanisms.
By transferring the risk, an organization or individual can reduce their exposure to potential financial or operational losses. This can be done by purchasing insurance policies that cover specific risks, such as property insurance, liability insurance, or professional indemnity insurance. In such cases, the insurance company assumes the financial burden in the event of a covered loss or claim.
Risk transfer can also occur through contractual arrangements, such as through the use of indemnification clauses or by outsourcing certain activities or functions to external service providers. By including specific provisions in contracts, the responsibility for potential risks and associated liabilities can be transferred to the other party.
It's important to note that while risk transfer can help mitigate certain risks, it does not eliminate them entirely. Organizations should carefully evaluate the terms and conditions of contracts or insurance policies to ensure that the transferred risks are adequately covered and managed.
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the formula to determine the materials to be purchased is multiple choice question. (units to produce times materials required for each unit) plus desired ending materials inventory minus beginning materials inventory (units to produce divided by materials required for each unit) plus desired ending materials inventory minus beginning materials inventory (units to produce divided by materials required for each unit) minus desired ending materials inventory plus beginning materials inventory (units to produce times materials required for each unit) minus desired ending materials inventory plus beginning materials inventory
The formula to determine the materials to be purchased is: (units to produce times materials required for each unit) "plus desired ending materials inventory minus beginning materials inventory."
The formula to determine the materials to be purchased is given as:(units to produce times materials required for each unit) plus desired ending materials inventory minus beginning materials inventory.
How much material is required to produce one unit of a product, This number is multiplied by the number of products required to determine the total number of materials required to manufacture the product. Finally, the desired ending materials inventory minus the beginning materials inventory is added to the calculation.
Therefore, the correct formula to determine the materials to be purchased is: (units to produce times materials required for each unit) "plus desired ending materials inventory minus beginning materials inventory."
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What is a price ceiling?
A. The maximum price the government allows sellers to charge for a product
B. A form of price skimming that allows companies to set prices as high as they want
C. The minimum wage the government requires that companies pay employees for hourly work
D. A penetration pricing strategy
Please select the best answer from the choices provided
Answer:
A
Explanation:
The maximum price the government allows sellers to charge for a product
The maximum price the government allows sellers to charge for a product is a price ceiling. Thus option A is correct.
What is the price?Price, which is decided upon during a deal, is the dollar value of the good, commodity, or resource. That whenever a seller or manufacturer has monopoly power, they are referred to as price producers.
As the price is being charged for the product or the service that is being rendered. The price is charged by the seller. The price that is asked will be based on the cost and the profit that is what the seller wants.
But the seller can not charge the price for any goods they want. For that, the price ceiling is incorporated. This will be the maximum amount that the seller will charge for the goods.
Therefore, option A is the correct option.
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Please select the newly answerable business questions that emerged in the ""modern age"" of marketing
With the end of World War I, the modern era of marketing began. Utilizing all of a company's resources to give customers the best experience possible and spur business growth is modern marketing.
According to a recent McKinsey survey, marketing is a key factor in most or all of a company's growth agenda, according to 83 percent of worldwide CEOs. Large volumes of messages and content can be developed continuously, monitored by performance analytics, and then changed as necessary in a modern marketing company.
Broad offers and experiences across significant consumer segments are referred to as personalization. Today, the objective of modern age of marketing is to creatively deliver as much relevant one-to-one marketing as possible by leveraging data from all consumer interactions.
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"There is a growing demand of architects and engineers in developing
countries like Nepal." Justify this statement.
Answer:
yes the developing countries not only Nepal but India also I am in great need of such wonderful master architects and engineers . To develop their country condition they need search architects and engineers for their development
3. Which of the following is not a characteristic of a good citizen?
obeying laws
being informed about key issues
using natural resources wisely
owning property
Answer:
Owning property
Explanation:
Its the only one that affects solely 1 person rather than benefit the community as a whole
A property has a first mortgage of $200,000, a second mortgage of $50,000, and a third mortgage of $20,000. It is foreclosed and sold for $245,000. The holder of the third mortgage gets $________ and the holder of the second mortgage receives
an economic policy under which nations sought to increase their wealth and power by obtaining large amounts of gold and silver and by selling more goods than they bought
Mercantilism was an economic policy under which nations sought to increase their wealth and power by obtaining large amounts of gold and silver and by selling more goods than they bought.
What is mercantilism?
Mercantilism is an economic nationalism aimed at building prosperous and powerful nations. Adam Smith coined the term "commercial system" to describe a system of political economy aimed at enriching a country by restricting imports and encouraging exports.
Who defined mercantilism?
It was Victor de Riqueti , marquis de Mirabeau in 1763 who was popularized by Adam Smith.
Characteristics of mercantilism:
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Briefly describe how the 'Bullwhip effect' works in the supply
chain process and give an example.
The "Bullwhip effect" refers to the phenomenon where small fluctuations in consumer demand at the end of the supply chain result in amplified variations in demand as we move upstream along the supply chain.
This effect can lead to significant inefficiencies, including increased inventory levels, higher costs, and disruptions in the supply chain.
The Bullwhip effect occurs due to several factors.
First, there is a lack of information sharing and coordination between different entities in the supply chain, resulting in distorted demand signals.
Second, each participant in the supply chain tends to hold safety stocks as a buffer against uncertainty, which further amplifies demand variations.
Third, ordering patterns and behaviors, such as batch ordering or gaming promotions, can magnify the effect as participants overreact to perceived changes in demand.
An example of the Bullwhip effect is observed in the retail industry.
Consider a scenario where a sudden surge in customer demand for a particular product leads the retailer to increase their order to the distributor.
The distributor, in turn, reacts by increasing their order to the manufacturer, who responds by boosting production and ordering more raw materials from their suppliers.
Each stage in the supply chain magnifies the demand variation, causing excess inventory buildup and inefficiencies. Meanwhile, if the initial demand surge was temporary, the excess inventory could lead to waste and financial losses.
To mitigate the Bullwhip effect, supply chain participants need to improve information sharing, adopt demand forecasting methods, implement collaborative planning, and use technologies like real-time data analysis to enhance visibility and responsiveness.
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A decrease in the nominal wage rate would lead to ___ in short-run aggregate supply and ____ in long-run aggregate supply.
A decrease in the nominal wage rate would lead to an increase in short-run aggregate supply and no change in long-run aggregate supply.
How does the nominal wage rate affect supply?The nominal wage rate affects the short - run aggregate supply by either increasing it or decreasing it. For instance, if the nominal wage rate decreases, the short run aggregate supply would increase because companies would be able to hire more people at the lower rates.
However, there will be no change in the long - run aggregate supply because in the long run, the nominal wages would have adjusted to price.
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When making decisions, managers often must decide between doing what is beneficial for the firm in the short term, and what is beneficial for both the firm and society in the long term. To address this conflict, a firm must
When making decisions, managers are often faced with a conflict between what is beneficial for the firm in the short-term and what is beneficial for both the firm and society in the long-term.
This conflict arises because the actions that benefit the firm in the short-term may not necessarily align with the interests of society as a whole, which can lead to negative consequences for both the company and society in the long-term.
To address this conflict, a firm must adopt a long-term orientation and consider the broader social and environmental impacts of its decisions. This means looking beyond immediate financial gains and recognizing that actions taken today can have far-reaching implications for the company's reputation, customer loyalty, employee morale, and overall sustainability.
Firms that prioritize social responsibility and sustainable business practices are more likely to build strong relationships with stakeholders, including customers, employees, investors, and regulators. They are also better equipped to weather economic downturns and other disruptions, as they have diversified their risk and invested in building resilient supply chains and communities.
Ultimately, the key to addressing the conflict between short-term gains and long-term benefits is a commitment to corporate social responsibility (CSR) and sustainable business practices. By prioritizing the needs of society and the environment alongside those of shareholders, firms can create value for all stakeholders over the long-term, ensuring their continued success and impact.
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9. mortgage balances (lo1, cfa1) a homeowner takes a 15-year fixed-rate mortgage for $140,000 at 7.6 percent. after seven years, the homeowner sells the house and pays off the remaining principal. how much is the principal payment?
The principal payment on the 15-year fixed-rate mortgage for $140,000 at 7.6 percent after seven years would be approximately $106,138.
To calculate the principal payment on a 15-year fixed-rate mortgage, we need to understand how mortgage payments work. Mortgage payments are typically composed of two components: principal and interest. The principal is the amount of money borrowed, while the interest is the fee paid to the lender for borrowing that money. The interest rate is determined by the lender and is usually expressed as an annual percentage rate (APR).
In this scenario, the homeowner took a 15-year fixed-rate mortgage for $140,000 at an interest rate of 7.6 percent. After seven years, the remaining principal balance on the mortgage would be calculated using an amortization schedule, which breaks down each payment into the principal and interest components. The homeowner would have made 84 payments over seven years, leaving 96 remaining payments on the mortgage.
To calculate the remaining principal balance, we would need to use an amortization calculator or formula, which takes into account the loan amount, interest rate, and term. Assuming the loan was fully amortized, the remaining principal balance after seven years would be approximately $106,138.
When the homeowner sells the house and pays off the remaining principal, they would need to pay the balance of $106,138 to the lender. This would represent the principal payment, as it is the amount borrowed that is being repaid. Any additional fees or charges associated with the mortgage would also need to be paid at this time, such as prepayment penalties or closing costs.
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