Describe each part of the input—throughput (transformation)—output feedback loop and the feedback loop’s relevance to organization change and survival.
What will be an ideal response?
The input—throughput—output feedback loop describes the cycle of how an
organization interacts with the external environment. It takes in energy from its
environment (the input). The energy is transformed (throughput) into a product or
service (output). Output is connected back to input with the money from the sale of the
product or service and from the raw materials and/or people who create the product or
service. Organizations cannot survive without this interaction with the environment.
They need sales and resources to transform into a product or service. If the
organization’s output fails to sell or doesn’t sell in enough quantity to pay for the input
(people/resources), the organization needs to identify why and change so its output is in
demand in amounts that meet its goals.
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Identify which of the following statements is true.
A. The trustee of a Sec. 2503(c) trust must distribute all of the corpus and accumulated income when the beneficiary reaches the age of 25. B. A "Crummey demand power" in a trust document allows the donor to demand a distribution from the trust in years in which assets are transferred to the trust. C. The gift tax exclusion is available for a gift of a present or future interest. D. All of the above are true.
Trend analysis requires the establishment of a base year for comparison purposes
Indicate whether the statement is true or false
Which of the following would not be reported on the income statement?
A. Cost of land purchased with cash for future use. B. Revenue for services provided to customers who promise to pay in the next period. C. Rent expense in the amount of rent paid during the period for use of a storage facility in the current period. D. Utilities expense in the amount of a bill received for utilities used during the current period but unpaid as of the end of the period.
Whitney Company treats each division as a profit center and expects a 20 percent profit on its total production costs. Division A produces a part that it sells externally for $19.00. It also supplies this part to other internal divisions. Its variable production cost for the part is $13.70. Using a negotiated-price approach, what is the negotiation floor for Division A?
A) $13.70 B) $16.35 C) $16.44 D) $17.72