If a company's cost of purchase index is 30 percent below the industry average, it means that ________
A) the company's shares are more expensive than other companies in the industry
B) the consumers feel that they are required to pay less for the company's products or services when compared to other companies in the industry
C) the consumers feel that they receive less real value from the goods and services they purchase from the company for the price they pay
D) the company's goods and products are rated 30 percent lower in terms of quality than those offered by the other companies in the industry
E) the company's market share is estimated to be 30 percent smaller than its largest rival company in the industry
B
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Internal economies of scale provide the incentive for countries to
a. specialize in a few products. b. manufacture a wider range of products. c. specialize in products that are in demand abroad. d. manufacture only a few units of products that are in demand.
Why is the opening of an interview so important?
A. It establishes the climate. B. It clarifies the purpose. C. It prevents the interviewee from relaxing too much. D. Both it establishes the climate and it clarifies the purpose are correct choices.
Johansen Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year: Direct materials$6,000Direct labor$20,000Rent on factory building$15,000Sales salaries$25,000Depreciation on factory equipment$8,000Indirect labor$12,000Production supervisor's salary$15,000 Jameson estimates that 20,000 direct labor-hours will be worked during the year. The predetermined overhead rate per hour will be:
A. $2.50 per direct labor-hour B. $4.00 per direct labor-hour C. $2.79 per direct labor-hour D. $3.00 per direct labor-hour
In the short run, market variability or volatility creates potential risk
Indicate whether this statement is true or false.