The method of performance measurement that compares employees in the group with each other to establish rankings is called a pair comparison method.
The different kinds of methods for performance measurement include:
forced-distribution methodsingle-ranking methodalternation-ranking methodpaired-comparison methodThe manager must compare each individual to every other employee in the division or workgroup when using a paired comparison technique. Each employee is compared to one another, and the employee who performs better out of the two is awarded a score of 1. The scores are tallied after all the pairs have been compared.
Pairwise comparison, commonly referred to as paired comparison analysis, aids in determining the relative weight of several options. This makes deciding on the most significant issue to address or the best course of action simple.
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what structure allows for each division to have full responsibility for its own value creation activities but the headquarters maintains responsibility for overall strategy and financial control? multiple choice question. global matrix flexible matrix worldwide product division international functional division
C) Although the headquarters still retains oversight of overarching strategy and financial control, the worldwide product division enables each division to be fully responsible for its own value-generation activities.
What is a worldwide product division structure?
The functions required for the particular goods or services a product/service division generates are contained in the global product division structure. The parent company has headquarters divisions for each of the main product categories with the corresponding personnel, financial, and other resources.
The headquarters division in charge of that product or class of products must receive reports from overseas subsidiaries producing that product or class of products. In order to improve response to competitive possibilities, efficiency, quality, or innovation, global product division structures locate production and value creation activities in suitable worldwide locations.
Global product divisions, which function in divisional, cluster, or holding company formats, are in charge of global product design. The global product divisions are not very similar. They are really different from one another.
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A firm experiencing constant economies of scale will have a long-run average cost curve that is:
a. upward sloping
b. vertical
c. downward sloping
d. horizontal
A firm experiencing constant economies of scale will have a long-run average cost curve that is horizontal.
A planning curve is a curve that represents the long-run average cost. This is so that a company can plan to produce an output over time by selecting a plant from the long-run average cost curve that corresponds to the output. In order to produce the desired output at the lowest possible cost, it aids the company in determining the size of the plant.
Because businesses have the freedom to change major parts of their operations, like factories, over a long period of time, long-term unit costs are almost always lower than short-term unit costs. Finding the LRATC's lower bounds is a goal shared by investors and company management.
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the company uses direct labor-hours as its overhead allocation base. the variable portion of its predetermined manufacturing overhead rate is $2.25 per direct labor-hour and its total fixed manufacturing overhead is $50,000 per quarter. the only noncash item included in fixed manufacturing overhead is depreciation, which is $12,500 per quarter.
The manufacturing or factory overhead for the company is $572,000.
What is a factory overhead?Factory overhead, also known as manufacturing overhead, work overhead, or factory burden in American English, refers to the overall expense associated with running all production facilities for a manufacturing organization that cannot be clearly linked to a specific product. Typically, it pertains to indirect costs and indirect labor. With the exception of the cost of raw materials, overhead also includes all manufacturing expenses. The expenses incurred in the factory, excluding the costs of direct labor and direct materials, are those related to the manufacturing process. Typically, cost pools of factory overhead are created and distributed to the units produced throughout the time period. When the created units are eventually sold as finished items or written off, the cost is tacked onto the expense.
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The standard cost for blank______ manufacturing overhead is computed the same way as the standard cost for direct labor.
The standard cost for variable manufacturing overhead is computed the same way as the standard cost for direct labor.
The direct labor hours are the variety of direct labor hours had to produce one unit of a product.
The figure is received by dividing the full range of completed products with the aid of the entire quantity of direct labor hours had to produce them.
Standard costing is a tool used in managerial accounting to price range and song costs.
Variance analysis is a technique used to compare real effects towards budgeted quantities, usually intending to perceive regions where prices may be decreased. Trendy fee variances may be either favorable or destructive.
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If the world price for a good exceeds the before-trade domestic price for a good, then that country must have.
If the world price for a good exceeds the before-trade domestic price for a good, then that country must have; A comparative advantage in the production of the good.
What is domestic trade?
Domestic trade can be defined as the exchange of goods or services within an individual country or territory. The market is usually constrained by the borders of that country, so that all products are bought and sold by people living within the domestic market. The benefits of domestic trade includes transaction costs which are associated with making sales tend to be much lower for domestic markets due to a lack of tariffs and customs duties.
While the disadvantage includes that the countries that do not have supplies of certain resources will not be able to enjoy those resources.
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the carrying amount of bonds is calculated by adding the balance of the discount on bonds payable account to the balance in the bonds payable account. true or false
The carrying price of bonds is calculated by way of including the stability of the Discount on Bonds Payable account to the stability in the Bonds Payable account.
The loss on bond redemption is the difference between the money paid and the carrying cost of the bonds.
Is bonds payable the carrying amount?The carrying cost of a bond is not equal to the bond payable quantity except the bond was issued at par. When a bond is issued at a premium, the carrying value is higher than the face fee of the bond. When a bond is issued at a discount, the carrying cost is less than the face cost of the bond.
The carrying cost of a bond issued at a discount is calculated by using subtracting the unamortized cut price from the par value.
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https://brainly.com/question/23776610#SPJ4markets characterized by declining long-run average costs are often referred to as multiple choice perfect competition. diseconomies of scale. natural monopolies. nonprofit organizations.
markets characterized by declining long-run average costs are often referred to as natural monopolies.
What is an example of a natural monopoly?For example, the utility enterprise is a herbal monopoly. The utility monopolies supply water, sewer services, electricity transmission, and energy distribution such as retail natural gasoline transmission to cities and towns across the country.
Are airlines a herbal monopoly?Commercial aviation is what economists call a “natural monopoly.” The most excessive instance of such an industry is an electric powered utility. It places up large amounts of capital to construct producing capacity, string the wires, and join houses as well as businesses.
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https://brainly.com/question/13113415#SPJ4a construct that has been related to employee turnover, organizational citizenship, and job performance is .
Job involvement their work, or how much importance that has been related to employee turnover, organizational citizenship, and job performance is job involvement,
which in our study is a form of attitude toward work. There should be a distinction between involvement at work and employment involvement. A person's voluntary engagement inside an organization or business that includes job performance, organizational citizenship behavior (see below), and creativity is known as organizational citizenship behavior (OCB), or organizational psychology. Workplace conduct reflects the actions that employees take while. Behaviors of Employees That Need To Be Recognized Humility. Everyone enjoys receiving praise, but few people are willing to own up to their faults. Adaptability, teamwork, the capacity to solve problems, assurance, and dependability.
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upon meeting someone for the first time and hitting it off a bit, you ask for and get the person's phone number. were you to put the number into your phone to save it for possible future use you would actually be utilizing which of the roles that stm can play?
The memory system responsible for the learning, storage, and retrieval of the procedures (rather than episodes) that underlie motor, visuospatial, or cognitive skills is known as procedural memory.
What is procedural memory?Procedure-specific memories are those that form over time as a result of repetition. A thorough experimental research revealed that H.M. could learn specific procedural skills just as effectively as average people. One of these motor tasks had him using a pen to trace the outline of a star while receiving feedback on his progress from the reflection of his tracing in a mirror. Similar to how average people would perform this assignment, H.M. got better with practice. But despite his continual progress, he treated each trial as if it were his first. H.M. was unable to create declarative memories of the training experience, therefore in contrast to people who performed the task normally, he was unaware that he was improving.One of the earliest pieces of evidence suggesting that declarative memory (i.e., the capacity to "know what" occurred) and procedural memory (i.e., the capacity to "know how") are separate abilities came from this discovery. That is, procedural memories can form even when a person is not conscious that they are learning a new ability. The tracing task improvement by H.M. proved that procedural memory is independent of the health of the medial temporal lobes.
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rationalization and optimization of your supply base can result in group of answer choices lower order transaction costs because you have less suppliers to manage suppliers who perform well according to your performance metrics both answers are correct
There may be a range of viable answers as a result of the rationalization and optimization of your supplier base.
option - Both Answers are Correct
An organization that contributes products or services is referred to as a vendor, supplier, provider, or seller in a supply chain. A supply chain vendor often produces inventory or stock products and sells them to the chain's next link. These terms now describe a provider of any goods or services.
Anyone who offers goods or services to another business is referred to as a vendor in supply chain management. Vendors can engage in business-to-business (B2B) or direct-to-consumer (B2C) or business-to-government (B2G) sales. While some vendors create products that can be kept in inventory and then sell them to clients, other vendors provide services or experiences. The terms vendors and the term supplier are often used indifferently.
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when requesting a waiver, the required documents should be presented to the faa at least how many days prior to the planned operation?
The needed paperwork must be sent to the faa at least 90 days before the anticipated operation when obtaining a waiver, right.A waiver is a document that the FAA issues to an application and which typically .
Rules and regulations that the applicant is expected to abide by.Because the FAA generally requires applicants to submit their applications at least 90 days before the planned operation begins, applicants should make every effort to submit their applications before day 90 of the planned operationThe requirement for documentation of informed consent may be removed when the only document linking the subject and the research is the consent form and the only risk is a breach of confidentiality.The term "research subject" refers to a participant in research. Information (or "data") is obtained from or about the subject to help with the study problem.Other terms for research subjects include study volunteers, research subjects, and human subjects.Finding a study topic is the first stage in any research project. It may seem obvious, but it is not. Without further development into specific study objectives and research problems, students who receive insufficient advice typically choose a research topic and leave it at that.
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which of the following is the first task in international financial management? question 6 options: working capital and cash flow management managing currency risk navigating the complexities of multinational accounting and taxation determining the capital structure
d)Determining the capital structure is the first task in international financial management.
A multinational company or a firm that has expanded in other countries needs effective international financial management when setting up business outside its borders.
The first step in international financial management is to assess the total capital and the ways it is to be utilized when expanding a business in another country.
The capital structure will allow the business to evaluate the total revenue that would be required for the production, operations, and management of the business.
The question can be written correctly as:
which of the following is the first task in international financial management? question 6 options:
a) working capital and cash flow management
b) managing currency risk
c)navigating the complexities of multinational accounting and taxation
d)determining the capital structure
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valerie manages the finance department at her company, and she discovers that one of her employees is performing poorly and letting coworkers pick up the slack. valerie knows that resentment is building, so after an initial write-up, she proceeds with ano of the employee.
Valerie manages the finance department at her company, and she discovers that one of her employees is performing poorly and letting coworkers pick up the slack. Valerie knows that resentment is building, so after an initial write-up, she proceeds with an involuntary turnover of the employee.
The finance department is the unit of the company responsible for raising and processing funds on behalf of the organization. This department controls income and expenses to minimize disruption and ensure effective business operations.
The company's finance department is responsible for managing the company's finances. This includes balance sheets, cash flow reports, financial statements, record keeping and report preparation. This includes managing the company's payroll.
Finance is a study of money and investments that explains the basics of investing, banking, capital markets, and more. It is the management of money, which includes various activities such as investing, saving, borrowing, budgeting, and accounting.
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suppose that a financial crisis decreases planned investment spending by $100 billion, and the marginal propensity to consume is 0.8. assuming no taxes and no trade, real gdp will by .
The real GDP will decrease by $500 billion.
What is GDP?A country's gross domestic product (GDP) is the sum of the market values of all the finished goods and services produced within its borders during a specific time period. As a general measure of all domestic production, it provides a comprehensive evaluation of the economic health of a specific nation. GDP is frequently calculated on an annual basis, although it is also occasionally approximated on a quarterly basis. For example, the US government generates an annualised GDP estimate for the entire year as well as each fiscal quarter. Each item of data in this report is supplied in actual terms, which allows for the calculation of the data to account for price changes. The result is data that is net of inflation.
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a retired teacher had participated in a tax-sheltered annuity. contributions made on her behalf into the plan totaled $100,000. this year she received a lump-sum payment from the annuity of $160,000. how is the distribution taxed and what is her cost basis?
$6,000 is taxed as ordinary income and $10,000 is returned to her tax-free as it is her cost basis: will be treated as ordinary income. (84766)
What is distribution tax?Tax Distribution is the result of (a) the total amount of taxable income or gain assigned to the Partners under Section 5.04(a) for such period and (b) the applicable tax rate for such period for any fiscal quarter, fiscal year, or other period of the Partnership during the term of the Partnership.Nonqualified variable annuities accept after-tax money as contributions. The cost basis of an individual in the plan is the amount of a contribution made after taxes. The cost basis in this case is the retired teacher's $10,000 payments. In this case, the additional $6,000 provided to her will be regarded as ordinary income. (84766)
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Which of the following is a good direct mail technique?
A. Self folding mailer.
B. Use self-folding mailers.
C. Print postage labels from your computer.
D. Hand address the envelopes.
Hand address envelopes is a good direct mail technique.
Hand addressed envelopes help make the mailing piece appear to be sent from a family or friend, immediately increasing the interest and desire to open the mailer. It also adds a sense of importance and effort you made to send the mailers to these prospects.Much more than an envelope; a hand-addressed envelope reveals how important a recipient is to the sender. It is written with the intention that it is meant for you; it's contents were created with you in mind. A handwritten envelope adds a special touch to the first piece of paper your family and friends will encounter; inviting them to not only celebrate with you, but cherish every detail to come.
Thus, option (d) hand address the envelopes is correct.
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Which of the following is incorrect regarding the statute of frauds and contracts whose terms prevent possible performance within one year? Multiple Choice a. The one year period begins to run the day her the contract is created b. A contract does not come within the statue of frauds could be completed within one year even if it is highly unlikely that contract will be completed within one year c. A contract for lifetime employment does not have to be in writing in order to be enforceable d. Contract whose performance, bered on the terms of the correct could not possibly occur within one year fail within the statute of rude e. The one-year period begins to run the day the contract is scheduled to begin.
A contract for lifetime employment does not have to be in writing in order to be enforceable is incorrect regarding the statute of frauds and contracts whose terms prevent possible performance within one year option C is correct .
What is the Statute of Frauds?
A body of law known as the statute of frauds stipulates that certain contracts must be in writing in order to be enforceable. Furthermore, that written agreement frequently contains requirements, such as delivery requirements or what must be contained in that written agreement.What are the four exclusions from the fraud statute?
Admission, performance, and promissory estoppel are examples of these exceptions. When one party admits under oath that an oral agreement was made, it means that the agreement can be enforced without having to comply with a statute of frauds' requirements. Performance can refer to either complete or insufficient performance.Learn more about the Statute of Frauds
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effects of pursuing a harvest strategy include lowered employee morale, rapidly defecting customers and a faster decreasing market share than a company might initially expect. true false
False, effects of pursuing a harvest strategy include lowered employee morale, rapidly defecting customers and a faster decreasing market share than a company might initially expect.
What does the term "harvest strategy" mean in business?
A harvest strategy entails cutting back on purchases of a well-known product in order to increase revenues. As profits are spent in more recent models or technological advancements, harvest tactics are typically used on outmoded products.What other harvesting tactics are there?
Outright sales and cost-cutting to boost earnings are the two main categories of harvest strategy. Which one is best in a particular circumstance depends on a number of variables, including the owner's goals and other uses for the potential profit.Learn more about harvest strategy
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as a hotel salesperson, you earn a commission of 3% on all sales. you are averaging sales of $150,000 per month. what are your expected commissions for the year?
Expected commissions for the yr is $54,000.
The required details for commissions in given paragraph
A fee is a carrier charge assessed through a dealer or funding consultant for presenting funding recommendation or coping with purchases and income of securities for a client. There are essential variations among commissions and fees, at the least within side the manner those phrases are used to explain expert advisors within side the monetary offerings industry. A fee-primarily based totally consultant or dealer makes cash through promoting funding merchandise together with mutual price range and annuities and accomplishing transactions with the client's cash.
A fee-primarily based totally consultant expenses a flat price for coping with a client's cash. This can be both a greenback quantity or a percent of property below management (AUM). Sales among own circle of relatives contributors are often presents of equity, which aren't fee-primarily based totally.
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nico's net take-home pay per month is $1,600. what is the maximum dollar amount of debt payments, excluding a home mortgage, he should have? multiple choice $480 $800 $160 $320 $0
The recommended maximum debt payments-to-income ratio is 20 percent. Thus, the maximum monthly debt payment amount is $320
Maximum monthly debt payment = 0.20 × Monthly income
= 0.20 × $1,600
= $320
Debt is an obligation that requires one party, the debtor, to pay another party, the creditor, money or another agreed-upon value. Debt differs from an immediate purchase in that it requires a deferred payment or series of payments. The sum that the borrower owes to the lender is the simplest definition of debt. A debt is an amount of money that is borrowed for a specific amount of time and must be paid back along with interest payment. The borrower's creditworthiness affects both the size and the approval of the debt. Debt can be caused by a number of things. Expense-inducing life events like having children or moving to a new home could be the root of some causes.
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explain why Microsoft's growth over time would affect how it was organized and how it would
manage employees.
It is important to manage employees as employees are the basic source for the growth of the organization and Microsoft is one of the organization that provides services and products around the world.
What is management?Management is the upper level employees that manages the employees hired by the company, employees are the core area for any organization and it plays a vital role in the growth of the organization it is therefore important to manage the employees so that they are motivated and work hard and smart.
For a company like Microsoft it is important to manage the employees and keep them motivated so that they work with commitment and the company can reach the goal of their growth. Employees can be motivated with increased remuneration and appreciations.
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dom is reviewing a perceptual map that compares a number of jeans brands based on customer survey data. five of the eight brands are depicted as points close together on the map. a logical conclusion dom can draw from this perceptual map is .
A logical conclusion dom can draw from this perceptual map is the five brands are viewed as most interchangeable by consumers.
What's the objective of a perceptual map in marketing?Basically, perceptual mapping is allowed to help you to more conclude the business and to see how target markets are actually perceiving your trademark. It also Helps you distinguish gaps and extrapolate the actions of consumers. Allows you to estimate recent marketing campaigns.
What's perceptual map utilized for?A perceptual map is a chart used by market investigators and enterprises to depict and conclude how target clients view and feel about a given brand or product. Perceptual maps can also be pertained to as product positioning maps. Perceptual mapping is a tool that can help companies extrapolate client shoes to help guide business opinions. Any association using perceptual mapping can consider new plans for growth grounded upon client comprehensions of the association and its major challengers.
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rstn company produces its product in two sequential processing departments. during october, the first process finished and transferred 150,000 units of its product to the second process. of these units, 30,000 were in process at the beginning of the month and 120,000 were started and completed during the month. at month-end, 20,000 units were in process. compute the number of equivalent units of production for direct materials for the first process for october under each of the following three separate assumptions using the fifo method. 1. all direct materials are added to products when processing begins. 2. beginning work in process inventory is 30% complete for direct materials cost. ending inventory is 80% complete for direct materials cost. 3. beginning work in process inventory is 60% complete for direct materials cost. ending inventory is 20% complete for direct materials cost.
Rstn company produces its product in two sequential processing departments.
Total equivalent units 157,000
Item Units Workings EU Notes
Opening inventory 30,000 70%×30,000 2,100 1
Fully worked 7 120,000 100%×120,000 120,000 2
Closing WIP 20,000. 80%×20, 000 16,000 3
Total equivalent units 157,000
Notes
1. The degree of completion for opening inventory is 70% i. e 100%-30%. Remember that 30% work has been done in the previous period, so the balance is to be done in this current period
2. Fully work represent the units of inventory introduced in the current period and completed in the same period. Meaning 100% work was achieved in the period.
3. Closing work is only 80% completed. This represent work started this period but not yet completed.
Equivalent units for the month of October is 157,000 units i.e (2,100+120,000+16,000)
A product is any object or carrier you sell to serve a customer's need or need. They may be bodily or digital. physical merchandise consist of durable goods (like cars, furniture, and computer systems) and nondurable goods (like meals and liquids).
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Nelson is documenting all the steps it takes to recruit, hire, and onboard a new employee. what would be the best way to describe these steps?
In a case whereby Nelson is documenting all the steps it takes to recruit, hire, and onboard a new employee the option that would best describe these steps is C) hiring hierarchy.
What is hiring hierarchy?The hiring hierarchy can be described as the term that is been used to describe the process that is been followed to recruit new workers into the organization.
It should be noted that this process involves many sub steps that is needed to followed, and these can range from opening the requisition, screening the applicants as well as interviewing the candidates, selecting the best and after these process has been taken then the company can proceed to the process of making the offer.
Theefore, option C is correct because all these process that s been ,mentioned in the question that Nelson took to recruit the employee can be described as the hiring heirachy.
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Check the complete question:
Nelson is documenting all the steps it takes to recruit, hire, and onboard a new employee. What would be the BEST way to describe these steps?
A) hiring workflow
B) hiring dynamics
C) hiring hierarchy
D) hiring org chart
Answer:
Actually its highering workflow (A)
Explanation:
the management of translation exposure is best described as multiple choice selecting a mechanical means for handling the consolidation process for mncs that treats inventory valuation as fifo on the income statement and lifo on the balance sheet. selecting a mechanical means for handling the consolidation process for mncs that logically deals with exchange rate changes. selecting a mechanical means for handling the consolidation process for mncs that makes this quarter's accounting numbers as attractive as possible. selecting a mechanical means for handling the consolidation process for mncs that treats inventory valuation as lifo on the income statement and fifo on the balance sheet.
Selecting a mechanical means for handling the consolidation process for MNCs that logically deals with exchange rate changes.
A device is a bodily device using electricity to apply forces and control movement to perform a movement. The time period is normally applied to artificial gadgets, which includes those employing engines or automobiles, but also to natural organic macromolecules, inclusive of molecular machines. Machines may be driven by using animals and those, through natural forces such as wind and water, and by chemical, thermal, or electrical power, and consist of a system of mechanisms that shape the actuator input to gain a specific utility of output forces and movement. They also can include computer systems and sensors that display overall performance and plan motion, regularly called mechanical structures.
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among valuation models, the difficulty of estimating a required rate of return is most likely to be a disadvantage of using:
The Gordon growth model's disadvantage in comparison to other valuation models is probably the difficulty in calculating the necessary rate of return.
Explain about the Gordon growth model's?The Gordon growth model (GGM) assumes that a company will always exist and that dividends will increase consistently when assessing its stock. In order to discount an infinite number of dividends per share back into the present, the GGM uses the required rate of return.
The current prices of all anticipated future dividend payments are added up in the Gordon Growth Model, also known as the dividend discount model, to determine the market value of a publicly listed stock.
The Gordon Growth Model can be used to determine how growth rates, discount rates, and valuation are related to one another.
Despite the valuation's sensitivity to variations in the discount rate, the model nevertheless demonstrates a clear relationship between valuation and return.
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which question below represents a crm analyzing technology question?
A. Why did sales not meet forecasts?
B. What customers are at risk of leaving?
C. What is the total revenue by customer?
D. All of the above
A. Why did sales not meet forecasts? represents a CRM analyzing technology question.
CRM is a technique in which a business or other employer administers its interactions with clients, usually the usage of records evaluation to look at big quantities of information.
As mentioned previously, any implementation of CRM needs to remember those 4 middle additives: era (applications and infrastructure), approach (enterprise goals and goals), method (techniques and business guidelines) and people (organizational shape, competencies, and incentives).
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a firm has a fixed cost of $700 in its first year of operation. when the firm produces 99 units of output, its total costs are $4,000. the marginal cost of producing the 100th unit of output is $200. what is the total cost of producing 100 units?
The marginal cost of producing the 100th unit of output is $200.
What is marginal cost ?A firm has a fixed cost of $700 in its first year of operation. When the firm produces 99 units of output, its total costs are $4,000.
The term "marginal cost" describes the rise in manufacturing costs brought on by the creation of more product units. A different name for it is the marginal cost of production. Businesses may evaluate how volume produced affects cost and eventually profits by calculating the marginal cost.
Marginal cost = (Change in cost) / (Change in quantity)
The volume of output either increases or decreases, which affects quantity. With an increase or decrease in production, there will be a variation in cost. The page on the marginal cost formula, which is significant in production, is now complete.
The marginal cost of producing the 100th unit of output is $200.
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all of the following business organizations provide limited liability to their owners except question content area bottom part 1 a. general partnership. b. stype corporation. c. corporation. d. limited liability company.
Except for general partnerships, all of the following business entities offer their owners limited liability.
Which entity provides owners with limited liability?Limited liability is provided to the owners of an S-corporation, commonly referred to as a subchapter S-corporation. Income taxes are not paid by S-corporations; instead, the profits and earnings are viewed as distributions. The shareholders are required to file individual income tax forms to disclose their income.
Which business structure types offer limited liability?A subchapter S corporation, usually known as a S corporation, offers its owners limited liability.
Which of the following categories of owners is shielded from liability?Limited liability shields business owners, investors, and shareholders from responsibility for financial obligations, legal disputes, or insolvency. Limited liability partnerships, limited liability firms, and corporations are a few examples of several company forms that provide liability protection.
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Garden variety flower shop uses 750 clay pots a month. The pots are purchased at $2 each. Annual carrying costs per pot are estimated to be 30 percent of cost, and ordering costs are $20 per order. The manager has been using an order size of 1,500 flower pots.
if monthly clay pot usage at Garden Variety Flower Shop is 750. The pots cost $2 each to buy. The cost of ordering is $20 each order, with annual carrying costs per plant expected to be 30% of cost. The supervisor has been placing orders for 1,500 flower pots:
a. By maintaining this order size, the shop will suffer an additional annual cost of: $105.24
What advantage would utilizing the ideal order quantity yield, which is 51.63%, provide?
a. An additional yearly expense
Demand annually (D) = 750 $ x 12 = $9,000
$20 is the cost of each order.
Annual carrying costs ($H) = $0.30 x ($2.00) = $0.60
1,500 is the order quantity (Q).
Locate TC for Q
Q2H + DQ + S = TC
TC=1,500÷2 × $0.60 + $9,000÷1,500×$20
TC=$450+$120
TC=$570............. (1)
now locate Qo
Qo=√2DS÷H
Qo=√2×$9,000×$20÷0.60
Qo=√600,000
Qo=$774.596
Find TC for Q.
now locate Qo
Qo=√2DS÷H
Qo=√2×$9,000×$20÷0.60
Qo=√600,000
Qo=$774.596
Qo=$774.60 (Approximately) (Approximately)
Locate TC for Qo
TC = Q2H + DQ
TC=774.60÷2 × $0.60 + $9,000÷774.60×$20
TC=$232.38+$232.38
TC=$464.76................(2)
Let's now calculate the additional annual cost.
Additional yearly cost = 570-464.56 dollars
Additional yearly expense = $105.24
Benefits of adopting the recommended order quantity (relative to the order size of 1,500)
Benefit=Qo÷Q
Benefit=$774.60÷1,500×100
Benefit=51.63%
As a result, just roughly 51.63 percent of the storage space would be required.
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