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zysi [14]
1 year ago
8

Which of following is a TRUE statement about inventory within a continuous review system?

Business
1 answer:
garri49 [273]1 year ago
5 0

Answer:

c. When ordering or setup costs increase, Economic Order Quantity increases

Explanation:

In inventory there are two types of review systems used to replenish stock, the periodic inventory and continuous inventory.

Continuous inventory involves ordering the same quantity of a good in each order. However the rate at which goods are replenished varies based on monitoring of level of goods. Orders are made when inventory gets to a certain level.

In this instance when there is an increase in ordering or setup there needs to be allocation of a higher amount for orders. The additional cost is added to the economic order quantity

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Shirts.com makes business dress shirts. The shirts could have defects in various ways including in the weave or color of the fab
fredd [130]

Answer: c.) Yes, the process is in control.

Explanation:

For the process to be in control, the number of defects have to be between the Upper Control Limit and the Lower Control limits of the c-chart which can be used to measure defects of irregularities per unit.;

UCL = C-bar + z*√(c-bar)

LCL = C-bar - z*√(c-bar)

C - Bar = \frac{Number of Dfects}{Number of shirts}

C - Bar = \frac{4+6+3+1+5+6+4+6}{8}

C - Bar = 4.375

z = 3 when using the 3 sigma control

UCL = C-bar + z*√(c-bar)

UCL = 4.375 + 3 * √(4.375)

UCL = 10.65

LCL = C-bar - z*√(c-bar)

LCL = 4.375 - 3 * √(4.375)

LCL = -1.9

LCL = 0 (Lower limit minimum should be 0 at least)

Defects are within the control limits. The process is in control.

6 0
1 year ago
A large beer company previously had a yearly budget of $50 million per year for advertising but increased the budget to $60 mill
ella [17]

Answer:

Yes they can continue advert but only if the 1% is equivalent or greater than the 10$ spent on advert.

Explanation:

There is an increase in revenue by 1%, this indicates that a number of people were attracted to the product because of the advert. With this the company might do better with consistent advert in subsequent year. They can change the channel of advert, improve on the quality of advert or change the time and location of the advert. Infarct, the 1% increment in revenue can be up to 20$ since we are not sure of the exact company's revenue. But if the 1% is far lower than the amount spent, the company can seek advice from professionals.

4 0
1 year ago
1. Sony has 12 core segments in its business. Is this too many or not enough? Are today’s companies diversified like they used t
mestny [16]

Answer:

1) This question is about whether diversification is good or bad for a large corporation. Whether diversification can be considered good or bad depends on the corporation itself, there is no one answer fits all. In this case, Sony is divided into 12 segments or divisions and each of them generates their own cash flows and offers their own products or services.

High tech companies generally tend to diversify a lot because they need to continuously produce innovative products or improve their existing ones. E.g. Google got so large and diversified that it turned into Alphabet which owns more than 200 companies (most of them through acquisitions). Sony's largest revenue sources are gaming services, financial services and home entertainment.

When we think about Sony we probably think about consumer electronics, the Playstation or even movies, but in order to be profitable, Sony had to expand and diversify. Sony's revenues are shifting from consumer electronics to services (including financial, gaming, network, music and movies), so that means that their diversification model actually worked.

2) Sony's goal with Future Lab is to create customer value and new lifestyles, whether they are able to do so depends on how well they work it out. Future Labs is based on San Francisco, and it should serve as a place where innovative prototypes should be tested by real users. The goal is that Sony can learn from actual real life user experiences in order to improve their products and services. The real life customers and users that want to participate in Sony's program must pay a fee for doing so, but they can also experience prototypes before anyone else.

7 0
2 years ago
The ​ S&P 500 index delivered a return of 10​%, 15​%, 15​%, and −25​% over four successive years. What is the arithmetic ave
natali 33 [55]

Answer:arithmetic average annual return per​ year= 3.75%

Explanation:

Year 1 = 10%

Year 2= 15%

Year 3 = 15%

Year 4 = -25%

total return = 15%

Arithmetic average annual return per year =(Return of year1 + return of year 2 + return of year 3+ return of year 4 )/4 =  15% /4 = 3.75%

5 0
2 years ago
A firm must choose from six capital budgeting proposals outlined below. The firm is subject to capital rationing and has a capit
MaRussiya [10]

Answer:

On IRR basis projects 1, 2, 3, and 5 will be selected.

On NPV basis projects 1, 3, 5,  and 6 will be selected.

Explanation:

The firm will accept or choose all the project that has a higher or equal internal rate of interest than cost of capital. However, in the given case project 4 has a lower internal rate of interest (12 percent) than the cost of capital. Thus, projects 1, 2, 3, and 5 will be chosen by the firm. While the firm has budget constraints so it will have no money for projects 4 and 6.

The firm will select all the projects with positive NPV when there is no budget constraint. But in case of budget constraint, the firm will select the project that has high NPV. Thus, Project 1, 6, 3, and 5 will be selected and there will be no money left for projects 2 and 4.

8 0
1 year ago
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