The following costs would be considered direct costs.
A. Wages of an assembly line worker
B. Glass used in the frame
D. Oak wood is used for the frame.
Fixed costs have a tendency to be fees that can be primarily based totally on time in place of the amount produced or bought through your enterprise. Examples of constant fees are lease and hire fees, salaries, application bills, insurance, and mortgage repayments. Some varieties of taxes, like enterprise licenses, also are constant fees.
“Cost” in its singular shape refers back to the sum of a complete group; “fees” refers to all the portions inside that group. For example, “the price of a provider consists of fabric fees and exertions fees.” From felony contracts to discussions of budgets, the distinction between “price” and “fees” regularly befuddles people.
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The amount of money the insurance company agrees to pay for an incident is called.
The amount of money the insurance company agrees to pay for an incident is called deductible.
A deductible is the quantity you pay for out-of-pocket expenses in your included fitness care earlier than your plan starts to pay. A deductible is distinctive than a premium.
A top class is the quantity you pay, usually each month, to have medical health insurance. Now, deductibles may be low or excessive, depending on the plan you select.
In an insurance coverage, the deductible is the amount paid out of pocket by means of the coverage holder before an insurance company pays any costs. In trendy utilization, the term deductible may be used to describe one of numerous forms of clauses which might be used by insurance corporations as a threshold for coverage bills.
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a business must not only look at its direct competitors, but also must contend with those firms that offer a product that a consumer might alternatively choose. for example, mcdonald's and burger king can be considered competitors and if one firm raises prices the other firm might gain its customers. however, if both firms raise their prices, customers may choose to purchase pizza instead. porter refers to this as the force of in the market.
A business must not only look at its direct competitors, but also must contend with those firms that offer a product that a consumer might alternatively choose. Porter refers to this as the force of substitutes in the market.
What factors affect the market?Supply and demand in an economy are regulated by government action as well as other causes such as social, demographic, cultural, economic, technical, political, and legal pressures. The supply of a product may be affected by the weather.
Why does the market operate the way it does?The free-market system is driven by self-interest. For their own financial advantage, people manufacture commodities and services. The struggle for consumers' dollars is what is known as competition among producers.
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which of the following costs should be included in the asset's original cost basis? (check all that apply.) multiple select question. shipping charges repairs prior to putting the asset in service depreciation repairs after putting the asset in service purchase price installation charges sales tax
The asset's original cost includes:
(A) Installation charges.
(B) Repairs prior to putting the asset in service.
(C) Sales tax.
(E) Purchase price.
(F) Shipping charges.
What is the asset's original cost?The complete cost of purchasing an asset is known as the original cost. The whole costs associated with purchasing and using an asset are taken into account when calculating its initial cost.An asset's book value is determined by subtracting its initial cost from its accumulated depreciation, which is calculated by multiplying the asset's age in years by its average yearly depreciation.The first asset cost consists of installation fees, pre-service repairs, sales tax, purchase price, and shipping fees.Therefore, the asset's original cost includes:
(A) Installation charges.
(B) Repairs prior to putting the asset in service.
(C) Sales tax.
(E) Purchase price.
(F) Shipping charges.
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Correct question:
Which of the following costs should be included in the asset's original cost basis?
A. installation charges
B. repairs prior to putting the asset in service
C. sales tax
D. repairs after putting the asset in service
E. purchase price
F. Shipping charges
G. depreciation
The standard cost for blank______ manufacturing overhead is computed the same way as the standard cost for direct labor.
The standard cost for blank variable manufacturing overhead is computed the same way as the standard cost for direct labor.
How much is the direct labor efficiency variance?The labor efficiency variance is equal to the number of direct hours budgeted for a period minus the number of hours actually worked by the employee multiplied by the standard hourly rate.
The direct variance in labor efficiency is the standard time required for actual output compared to the time actually spent, and the time difference multiplied by the standard cost per direct labor hour. Here are some examples of amounts: Suppose the standard for direct labor is 3 hours per unit of production and the standard cost of 1 hour of direct labor is $10. Suppose the production for the period was 6,000 units, the actual direct labor hours were 18,400 hours, and the labor earned $10.30 per hour. The standard direct labor cost for actual production would have been 18,000 hours at $10/hour (6,000 production units x 3 standard hours) totaling $180,000. This equates to a total deviation (efficiency and rate) of $9,520. Part of this discrepancy is because the rate is too high at $0.30, and part of this discrepancy is because direct labor takes too long and is not efficient.
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Saving and net flows of capital and goods In a closed economy, saving and investment must be equal, but this is not the case in an open economy. In the following problem, you will explore how saving and investment are connected to the international flow of capital and goods in an economy. Before delving into the relationship between these various components of an economy, you will be asked to recall some relationships between aggregate variables that will be useful in your analysis. Recall the components that make up GDP. National income (Y) equals total expenditure on the economy's output of goods and services. Thus, where C consumption, I investment, G government purchases, X- exports, M imports, and NX net exports: Also, national saving is the income of the nation that is left after paying for Therefore, national saving (S) is defined as: Rearranging the previous equation and solving for Y yields Y Plugging this into the original equation showing the various components of GDP results in the following relationship:
The national saving is defined as government purchases and consumption.
What is national saving?The total of private and public saving constitutes a nation's national saving in terms of economics. It is the same as a country's income less its government spending and consumption. There are three purposes for GDP in this basic closed-loop economic model (the goods and services it produces in a year). Y=C+I+G is a formula that can be used to express the three uses of C consumption, I investment, and G government purchases if Y equals national income (GDP). The amount of money that is left over after consumption and government spending can be considered national saving. Both private and public savings are included in national saving. In neoclassical economics, the interest rate is crucial in setting a balance between saving and investment.
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production with the process describes a manufacturing operation in which the production run is short and machines are shut down frequently or changed in order to produce different products.
Synthetic production system is the production with the process describes manufacturing operation in which production run is short and machines are shut down.
What are manufacturing operations?Manufacturing operations are concerned with running a facility, as opposed to maintenance, supply and distribution, health and safety, emergency response, human resources, security, information technology, and other entities that support the infrastructure. Operators, engineers, technicians, and management are the individuals who constitute "operations." In a production environment, primarily. Production of items through manufacturing involves the use of machinery, manpower, tools, and chemical or biological processing or formulation in addition to equipment, tools, and machinery. The phrase can be used to describe a variety of human endeavours, from handicraft to high-tech, but it is most frequently used to describe industrial design, in which primary industry raw materials are converted into finished things on a vast scale.
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If a variable input is added to some fixed input, beyond some point the resulting extra output will decline." This statement describes?
A. Economies and diseconomies of scale
B. The law of diminishing marginal uitility
C. X-inefficiency D
. The law of diminishing marginal returns
If a variable input is added to some fixed input, beyond some point the resulting extra output will decline." This statement describes the law of diminishing returns.
A variable input is a resource or factor of production that a company can alter in the short term in an effort to alter the output produced. Most businesses use a variety of variable inputs in their short-run production, particularly labor, raw materials, and energy. " Because it was a return, this shirt was extremely affordable. "Finally, we reach "decline." Declining something or declining to do something means politely refusing to accept or do it. decline is a rather formal synonym for refusing. According to polls, less people now support the party. formal Away from the house, the land rapidly declines.
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the purpose of a job interview is for the applicant and interviewer to exchange information.
a. true
b. false
The purpose of a job interview is for the applicant and interviewer to exchange information.
The statement is false.
A job interview is a mutual alternative of facts as it presents the candidate with an opportunity to both benefit from facts approximately the branch and role, and to discuss his/her personal talents and professional desires in relation to the process.
The interviewer will try to decide whether or not you will be an asset to the enterprise.
Your goal is to give yourself a first-class candidate for the location and also to examine more about the location and the interviewer's agency to determine whether or not both are well proper for you and your professional dreams.
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The belief that those who make less money must not be hardworking is an example of which type of bias, prejudice, or stereotype?.
The belief that those who make less money must not be hardworking is an example of socioeconomic bias/stereotype/prejudice bias, prejudice, or stereotype.
"Socioeconomics" is a catch-all term for a variety of fields of study. The term "social economics" may refer to the "application of economics to the study of society." More specifically, contemporary practice considers behavioral interactions of individuals and groups via social capital and social "markets" (not excluding, for example, sorting by marriage) as well as the formation of social norms. In terms of economics and social values. A distinct supplementary usage defines social economics as "a discipline studying the reciprocal relationship between economic science on the one hand and social philosophy, ethics, and human dignity on the other" toward social reconstruction and improvement, or as emphasizing multidisciplinary methods from fields such as sociology, history, and political science.
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a definitive estimate should be the least accurate of the three types of estimates.
a. true
b. false
The statement is False. A definitive estimate should be the least accurate of the three types of estimates.
A basis of Estimate (BOE) is an analyzed and punctiliously calculated number that may be used for proposals, bidding on authorities contracts, and executing a project with a fully calculated price range.
The motive of an estimate has distinctive which means distinguishing human beings concerned with the technique. To the proprietor, it gives an inexpensive, accurate concept of the costs. This can assist him or she determine whether or not the work can be undertaken as proposed, wishes to be modified, or should be deserted.
The estimate is prepared by using calculating the portions from the dimension at the drawings for numerous objects required to complete the assignment and extended by way of the unit value of objects worried. Reason for Estimates: To recognize the amount of money required to complete the proposed paintings.
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a decline in job performance, sloppy work habits, and irritable and quarrelsome behavior are examples of
A decline in job performance, sloppy work habits, and irritable and quarrelsome behavior are examples of stress.
Any type of change that causes physical, emotional, or psychological strain is referred to as stress. Your body reacts to anything that demands attention or action by causing stress. Stress affects everyone to some extent. Your general well-being, however, is greatly influenced by how you handle stress.
A feeling of agitation is called irritable. Although some people consider "agitation" to be a more extreme variation of irritable. Whatever word you choose, when you're irritable, you're more likely to get frustrated or upset quickly. In response to difficult circumstances, you might experience it. Stress from daily life, lack of sleep, low blood sugar, and hormonal changes are just a few of the things that can cause or contribute to irritability.
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b. an investor is buying a firm with an expected perpetual annual cash flow of $100,000 but is unsure of its risk. if he thinks the beta of the firm is 0.5, when in fact the beta is really 1.0, how much more will he offer for the firm than it is truly worth?
The amount of money more that I would offer more than it is truly worth is
How much more money would I offer?The amount of money an investor would offer a firm is equal to the present value of the cash flow expected from the firm. Present value is the value of the discounted cash flow.
Present value = cash flow / required return.
Beta measures the risk of a company. Beta is one of the inputs used in determining the required return.
Required return = risk free rate + (beta x market premium)
Required return when beta is 0.5 is: 2% + (8% x 0.5) = 6%
Required return when beta is 1: 2% + (8% x 1) = 10%
Present value when beta is 0.5 : 100,000 / 0.06 = $1,666,666.67
Present value when beta is 1: 100,000 / 0.1 = 1,000,000
Difference = $1,666,666.67 - 1,000,000 = $666,666.67
Here is the complete question:
an investor is buying a firm with an expected perpetual annual cash flow of $100,000 but is unsure of its risk. if he thinks the beta of the firm is 0.5, when in fact the beta is really 1.0, how much more will he offer for the firm than it is truly worth?
Assume that the risk free rate is 2% and the market premium is 8%.
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traveler’s insurance uses an umbrella in its name to symbolize protection. the symbol provides a cue to overcome which aspect of a service?
Traveler’s insurance uses an umbrella in its name to symbolize protection. the symbol provides a cue to overcome the Perishability aspect of service.
Travelers are considered a good coverage organization as it has a financial balance, a robust credit score rating from A.M. great, and an above-average purchaser pride score from NAIC.
Tourists is one of the largest carriers of property and casualty insurance products in the united states.
Our success is constructed upon our capability to offer modern coverage and threat safety products and services in-synch with our customers' desires.
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The change in any factor other than ________ would shift the demand curve
a. Weather b. interest rate c. Price d. all of the above.
The change in any factor other than price would shift the demand curve. So, the correct option is (c).
The relationship between both the cost of an item or service and the quantity demanded over a particular amount of time is represented graphically by the demand curve. The price and quantity demanded are often depicted with the price on the left vertical axis and the horizontal plane, respectively.
The law of demand states that when the price of a given good increases, the quantity required falls, all other factors being equal. This is represented by the demand curve moving downwards from the left to the right. The change in price does not cause shift in the demand curve instead factors other than price will cause a shift.
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if a person is conducting an ultrahazardous or abnormally dangerous activity that causes foreseeable harm to other persons, under which theory of tort law will liability most likely be found? group of answer choices intentional torts. respondeat superior negligence strict liability
Under the strict liability theory of tort law will liability most likely be found if a person is conducting an ultrahazardous or abnormally dangerous activity that causes foreseeable harm to other persons.
So, the correct option is D.
Ultrahazardous Activity, which is also referred to as "abnormally dangerous" or "ultrahazardous activity," describes behaviors of people or organizations that involve a high level of risk and typically fall under strict liability. Strict-responsibility torts include ultrahazardous activities. This implies that even if they followed safety procedures and did not make any mistakes, the person engaging in the activity can still be held accountable.
In terms of strict responsibility, there are three broad categories: abnormally risky behaviors; keeping apprehensive animals. Strict liability denotes that even when a person was not at fault or negligent, they were still legally obligated to compensate the injured or harmed. Absolute liability results from behaviors that are intrinsically risky, such as harboring dangerous animals or utilizing explosives.
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rent control is an example of a price ceiling. if a rent control law is enacted, there will be in the market
A price ceiling is something like rent control. A price limit is the highest amount that, under the rules, a seller may bill for a good or service. The amount of rent that a landlord may charge or raise is constrained by rent control.
The "rent ceiling" is the maximum amount of rent that a landlord is allowed to charge a tenant. The maximum amount of rent that can be charged in a particular area at any one time is capped by rent ceilings, a sort of rent control that is normally established by a law prohibiting landlords from overcharging for their homes, so protecting tenants.
Main Effects of Rent Ceilings on the Economy-
Rent caps make it easier for people to acquire affordable housing without having to worry about their ability to pay for it in the future, but studies have shown that they have unfavorable long-term economic repercussions. These include a decline in affordability, a delay in the new buildings, the encouragement of gentrification, the deterioration of rent-controlled structures, and a drop in the number of buildings that are readily available.
Pros and Cons of Rent Control for Tenants
Pro: Predictable Rent Increases and Amounts
a feeling of security
Con: Your landlord isn't motivated to improve the housing conditions of your unit.
the rent predictability is undoubtedly beneficial, less renter mobility can create drawbacks.
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the account allowance for doubtful accounts is classified as a(n) question 13 options: liability. contra account of bad debt expense. expense. contra account to accounts receivable.
In order to present the receivables at their net realizable value, the Allowance for Doubtful Accounts, a contra asset account, is subtracted from the gross receivables.
What category does allowance for dubious accounts fall under?The provision for questionable accounts is referred to as a "counter asset" since it reduces the value of an asset, in this example, the accounts receivable. The forecast made by management of the amount of accounts receivable that customers won't pay is known as the allowance, also referred to as a bad debt reserve. Untrustworthy accounts are advantageous. In the assets section of a company's balance sheet, immediately below the line item for "Accounts Receivable," the amount is listed as "Allowance For Doubtful Accounts." The expense of setting up a reserve for shaky accounts must be shown on your company's balance sheet. If the questionable debt turns out to be a bad debt in the end, you must record it as an expense on your income statement.
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if the supply curve for housing is perfectly inelastic, then a reduction in demand will cause the equilibrium price to:
A decrease in demand will result in a decrease in the equilibrium price while maintaining the equilibrium quantity if the supply curve for housing is perfectly inelastic.
A product is referred to as "perfectly" inelastic when it has an elasticity of zero. This indicates that regardless of how the product's price changes, neither the supply nor the demand will alter at all. The demand for an item or service that is totally inelastic would not fluctuate regardless of price; however, no such good or service exists.
A perfectly inelastic demand curve implies that the buyer would always buy the same quantity of a commodity or service, regardless of price. Vertical to the y-axis is the perfectly inelastic supply curve. This suggests that a change in price will not affect the quantity offered.
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what type of intermediary would purchase baseball bats from one producer, mitts from another, and balls from still another, and then sell an assortment to sporting goods stores?
Buying baseball bats from one manufacturer, mitts from another, and balls from a third, the wholesaler would sell a variety to sports goods retailers.
wholesale involves selling products in bulk to other businesses such as retail stores. A wholesaler is an intermediary merchant who sells primarily to retailers, other merchants, or industrial, institutional, and commercial consumers, usually for resale or business usage.
Wholesalers are essential players in the supply chain for the majority of goods, purchasing things in large quantities from producers and reselling them to retailers and other companies. It is the duty of wholesale distributors to purchase products, store them, prepare them for sale to customers, and then deliver them.
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the organization has grown considerably in recent months. now you manage eight individual switches and three routers. it's becoming more and more difficult to monitor these devices and stay on top of issues in a timely manner. what should you do?
Social listening involves monitoring mentions and conversations about your company on social media platforms, then analyzing them to uncover insights.
What possibilities does a company's social media use offer?Social networking may aid in customer acquisition, customer feedback, and customer loyalty for your business. Include global markets in the market you are targeting. By conducting market research, you can lower marketing expenses.
What advantages can social media marketing provide for my business?You'll discover the following advantages among others: Increasing brand recognition Social media marketing will make it simpler to educate individuals about the goals and services that your company offers. Using social media and linking to your website will result in a significant boost in the amount of visitors to it. Both ends are n. If that doesn't work, check to see if any nearby devices are interfering with the network.
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if bob and mike were analyzing how they motivate their employees in terms of two-factor theory, which of the following would be true?
Attending seminars could meet an employee's need for self-actualization, but this would be motivating only if pay, job security, inclusion, and recognition needs were also met would be true If Bob and Mike were analyzing how they motivate their employees in terms of Maslow's hierarchy of needs. Whereas the remaining ones would not be true in this context.
Sending Marco to an appropriate seminar would be one way that Mike and Bob could do to address this. Whereas the remaining ways would not be recommended in this context.
How the organization can support the employee's performance, what goals they believe should be set, and how the employee feels the organization's performance could be improved are something that should be discussed to make sure meetings are motivations for employees. Whereas the remaining one is not an ideal thing to discuss.
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costco's store brand kirkland signature is an example of which branding strategy?
Costco's store brand Kirkland signature is an example of private- label brand branding strategy.
Building on strategic management, strategic marketing arose as a separate subject of study in the 1970s and 1980s. The function of marketing as a conduit between a company and its clients is highlighted in marketing strategy, which makes use of a company's resources and competencies to gain a competitive edge (Cacciamatta & Lee, 2016).
Brand management in marketing starts with an analysis of how a brand is currently perceived in the market, moves on to planning how the brand should be perceived to achieve its objectives, and then concludes with making sure the brand is perceived as planned and achieves its objectives. For effective brand management, cultivating positive relationships with target markets is crucial. The product itself, as well as its appearance, cost, and packaging, among other things, are tangible components of brand management.
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pedro dislikes seabird coffee and thinks the company's stock is overvalued. he is currently short 1,000 shares of the company. he is concerned with the potentially unlimited risk he is exposed to and would like to use options to hedge that risk. his best option position would be
Pedro dislikes seabird coffee and thinks the company's stock is overvalued. He is currently short 1,000 shares of the company. He is concerned with the potentially unlimited risk he is exposed to and would like to use options to hedge that risk. His best option position would:
A) buy 10 Seabird Coffee calls.
B) buy 10 OEX (S&P 100 index) calls.
C) sell 10 Seabird Coffee calls.
D) buy 10 Seabird Coffee puts.
His best option position would be (A) buy 10 Seabird Coffee calls.
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a risk-free, zero-coupon bond has 15 years to maturity. which of the following is closest to the price per $1000 of face value that the bond will trade at if the ytm is 6.1%? a. $411.40 b. $553.15 c $663.78 d. $885.05 e. $774.42
The price of the bond will be $411.40. If the current yield on the bond is 6.1%, it will trade at $411.40.
What is risk-free bond:
Find the bond's price, or PV, using the following information.
n = 15
pmt = $0
p/yr = 1
fv = $1,000
ytm = 6.10 %
pv = ?
The bond price (PV), calculated using a financial calculator, is $411,4047 or $411,40.
If the current yield on the bond is 6.1%, it will trade at $411.40.
Bonds come in a variety of forms, including zero-coupon and bonds that pay coupons. The interest that is routinely paid to the bondholder is calculated using a coupon rate that is present in coupon-paying bonds. The zero-coupon bond is always issued at a discount and does not accrue interest for the bondholder. The price ought to be less than the face value as a result. We factor in the face value, the number of years till maturity, and the yield-to-maturity when evaluating the price (YTM).
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A company borrows $100,000 by signing a $100,000, 5% note that requires four equal payments of $.
A business signs a $100,000, 5% note that calls for four equal installments of $9259.
An annuity is what?An annuity is a legal agreement between you and an insurance company under which you make a single payment or a series of payments in exchange for regular payments that could start right away or at some point in the future.
Calculation:
The amount borrowed by the company, P = $100,000
The rate, r = 5% = 5/100
r = 0.05
Payments made per year, m = 4
Number of years, t = 4
Number of payments, n = mt
n = 4(4)
n = 16
Present value of an annuity, PV = 3.5460
The regular payment can be calculated using the formula
[tex]PV=PMT\frac{1-(1+r)^{-n} }{r} \\1,00,000=PMT\frac{1-(1+0.05)^{-16} }{0.05} \\5,000=PMT(1-1.05^{-16} )\\5,000=PMT*0.54\\PMT=\frac{5000}{0.54} \\PMT=$9259[/tex]
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the nation of catania regularly experiences changes in its national budget situation. in some years, catania operates with a budget deficit, while in other years it experiences a budget surplus. please classify each of the possible consequences into the appropriate category of the budget circumstance most likely to cause them.
When government spending exceeds its income from taxes, fees, and investments, a federal budget deficit results. The national debt, or federal government debt, is increased via deficits.
What are the main cause of budget deficit?Tax cuts can lead to revenue decreases, which can lead to a budget deficit, or a significant fiscal stimulus can increase government spending above and above what it already receives in tax revenue.
Therefore, Excessive government spending and insufficient revenue are the two main contributors to budget deficits. The difference between federal government spending and revenue in any given year.
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think of a standard application such as a payroll system. what might drive an organization to develop its own payroll application rather than purchase a ready-made application?
Software designed specifically for a certain function includes payroll software.
What is pay roll?
Software designed specifically for a single task is known as special purpose application software.
For instance, a phone's camera app will simply let us shoot and share photographs.
Another illustration would be a chess game where you could only play chess.
The payroll system assists in calculating payments, carrying out statutory compliance tasks, depositing monthly paychecks into the designated bank accounts of employees, etc. Payroll is a specific purpose application software.
As a result, it completes a specified task, namely salary calculation.
Payroll software is an illustration of a software with a defined purpose.
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A book written about the companies which succeeded and failed during the Great Recession is a book about __________________.
a. theory
b. history
c. history and theory
A book written about the companies which succeeded and failed during the Great Recession is a book about c. history and theory.
Theory and history of companies during great recession helps to learn the factors which affect that time and how to cope up with it. History and Theory was founded in 1960 and publishes articles, book reviews, and book summaries primarily in the following fields: critical philosophy of history, cause, explanation, interpretation, objectivity; speculative philosophy of history, comparative and global history; historiography, theoretical dimensions.
A theory can make an understandable, comprehensible claim about "objective reality." It may highlight the "type" of the data it refers to. We learn more and more about the data through theoretical analysis. Because it highlights more of the characteristics of the data, one hypothesis is preferable to another.
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with the market price of gold at c$1,562.50 per ounce (c$ stands for canadian dollars), maritime resources corp., a canadian mining firm, would like to assess the financial feasibility of reopening an old gold mine that had ceased operations in the past due to low gold prices. reopening the mine would require an up-front capital expenditure of c$67.8 million and annual operating expenses of c$19.42 million. maritime expects that over a five-year operating life it can recover 174,000 ounces of gold from the mine and that the project will have no terminal cash flow. maritime uses straight-line depreciation, has a 21% corporate tax rate, and has an 11.2% cost of capital.
Answer:
Bro theres no question here (?)
Explanation:
payments are known as lump sums. we can solve for the future value or the present value of a lump sum as we discuss below. finding the future value (fv), or -select- , is the process of going from today's values to future amounts. the fv equation is: here, pv
Single payments are known as lump sums. Compounding is the process of going from today's values to future amounts
A single payment given to a person or an organization at a specific period is referred to as a lump sum. This is distinct from an installment payment, which is made over a certain length of time in a number of smaller installments.
Compounding is a technique for reinvesting earnings or profits from investments or assets in order to produce further earnings over time.
As stated in the formula in the question, which was represented as follows: Compounding is the basis of Future Value (FV), as it takes into account the Present Value (PV) of an Asset, the Total Number of Years, How Often the Compounding Occurs in a Year, and The Annual Interest Rate.
FV = PV(1 + I)^N
Where;
FV = Future Value
PV = Present Value
I = annual interest rate
N = number of years
Therefore, single payments are known as lump sums.
Finding the future value (FV), or compounding, is the process of going from today's values to future amounts.
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