Answer:it ignores cash flows following the payback period
Explanation:
The payback method of budgeting does not consider inflows of cash that occur beyond or following the payback period, thus ignoring the profitability of one project as compared to another in the sense that one project may be more valuable than another based on future cash flows.
Also, Many capital investments provide complexity of cash flows as a result of investment returns over a period of many years, which also does not align with Payback method , because of this limitation, many businesses have adjusted by using their discretion to override this rule.
Answer:
C) the firm is experiencing a diminishing marginal rate of technical substitution.
Explanation:
Isoquant reflects factor combinations which give producer same output level. It is analogous to consumer's indifference curve, reflecting goods combinations giving same satisfaction level.
- It is downward sloping as same quantity of a good can be produced by - one factor increase, other factor decrease & one factor decrease, other factor increase.
- It is also concave i.e inwards bending towards origin, because of fallings slope. It implies that marginal rate of technical substitution (fall in one factor , replaced by gain in other factor) with same level of output i.e same isoquant - keeps on falling.
This concept is highlighted in the given statement : If a firm hires one worker and eliminates four units of capital, and hires one more worker and replaces three more units of capital, keeping output constant.
Answer:
Capacity utilization rate of team 1=4200/4700=0,89
Capacity utilization rate of team 2=3700/4700=0,78
Explanation:
To get the maximum capacity of utilization capacity manager must consider the routine safety and the level where average cost per unit, so we use 4700 widgets per day to get the rate of team 1 and 2.
Capacity utilization rate of team 1=4200/4700=0,89
Capacity utilization rate of team 2=3700/4700=0,78
The correct answer is job specifications. Job specifications
is being defined as a statement in regards of the essential components of the
job class by which it includes the summary of the work that are to be
performed, responsibilities, minimum qualifications, and as well as the primary
duties.
Answer with Explanation:
Following are some types of account investments that are better for emergency funds and the return on these investment varies depending upon the risk born by the investors:
- Current Account Investments
- Commodity Investments
- Mutual Funds
If the inflation rate is below the return paid on the current account then it could be a better investment option as the money doesn't loose its value over time.
If the inflation rate is higher than the return paid on the current account then it is better to invest in commodities like gold, petroleum products, etc, that are often termed as speculative investments.
If the investor is risk seeking person, then it is better to invest in mutual funds as the return on such investments is higher because of the higher risk that the investor bears.
