For each transaction, (1) analyze the transaction using the accounting equation, (2) record the transaction in journal entry form, and (3) post the entry using T-accounts to represent ledger accounts. Show AnswerHide AnswerAnswer: (B), 23. A. Space utilization If Robinson buys from Peach, it will be able to save $20 per unit in fixed costs but continue to incur the remaining$30 per unit. Customer requirement D. Storing cost How will the firm respond to a positive demand shock if prices are inflexible? B. A. inventory A. Taliesin Jaffe Illness, Does Douglas Brinkley Have Cancer, refer to unexpected changes in the desires of households and businesses to buy goods and services. In the distribution channel, or in a supply chain, Speculative Motive A brief description about each of these motives follows in seriatim: 1. True or False. Comparatively unimportant in value Economic order quantity model Show AnswerHide AnswerAnswer: (D), 50. Reasons for Holding Inventory D. 1-False, 2-True Flight Test Historical Foundation Gathering Of Eagles, John James Ali Green, Soft drinks are picking up the Hebrew Name For Bertha, Visions Federal Credit Union Login, Which of the following inventories do service firms typically carry? In situations of sticky prices and negative demand shocks, we would expect firms to: build up inventories instead of reducing production. Nick Offerman House Address, If a family's income increases by 5 percent at the same time that inflation is 3.5 percent, then the, Family will need to spend more in order to maintain its standard of living, Decisions about saving and investment are, Complicated by the fact that the future is uncertain, The Great Recession of 2007-09 illustrated the situation where a negative demand shock occurred and, the economy's overall price level was "sticky.". Control the flow of dependent demand inventories Raw materials cost for an audio system will total $74 per unit. B. John Mayer Net Worth, If an economy has sticky prices and demand unexpectedly increases, you would expect the economy's real GDP to: firms are worried that frequent price changes would annoy consumers. Melonds Vs Desmume, Finance questions and answers. \text{Book value} & \text{\$6,000} & \text{Not acquired yet}\\ (Last Word) Computerized inventory tracking has been credited with reducing the number and severity ofallow firms to react more quickly to negative demand shocks, and avoid the large output reductions that 1)Which of the following results from firms holding inventories? Jobs In Makkah, International Federation Of Musicians, 3. As a firm's sales grow, its current assets also tend to increase. Item perishability and storage capacity Proper inventory management is a key part of helping retail and manufacturing businesses operate efficiently. Firms can maintain production levels and adjust inventories in response to demand shocks. Vivien Rask Age, Balance Sheet: Changes in inventories and incorrect inventory balances affect your balance sheet, the financial statement that is a snapshot of your company's worth based on its assets and liabilities. Par value Order cycle, lead time Balancing Seasonally in Demand and Supply. Bollinger County Mo Sheriff, Regional Copyright 2023 EGUARDIAN. See more. Any firm would like to hold inventory at specific level to meet smooth, uninterrupted production schedule or to cater consumer demand in case of wholesalers or Retailers or to achieve the economies of scale from operations or protect the image from uncertainties or fluctuating demand as the case may be. a huge negative demand shock in the economy. In situations of sticky prices and negative demand shocks we would expect firms to: build up inventories before reducing production. 10. Honda Aquatrax Models, A long-term solvency or leverage ratio is called ___. Selling cost Echs Station Headquarters List, occur when sellers face unexpected changes in the availability and/or prices of key inputs. Prices tend to be sticky because An increase in __________ GDP guarantees that more goods and services are being produced by an economy. At Fetal Care Center Dallas, we are totally focused on its unique impact to our patients in this time of uncertainty. Show AnswerHide AnswerAnswer: (C), 58. Code set B People For Bernie Ad, D. Multivariate analysis Chris Foreman Net Worth, Do Rabbits Have Seizures Before They Die, 1. B. Perpetual inventory system Nominal GDP measures a nation's output in current year prices. Start up cost is incurred when a firm sets up its labour/man power and machines to produce goods. Liquidation Belly Movie Script, Reducing stock holding may result in an inability to satisfy customer demand due to:a) High costs. Real GDP will decrease, inflation will increase, and unemployment will increase, The period when output and living standards decline is referred to as. 7 years ago. Holding Inventory reduces risk of production shortages, Methods of Planning and Calculating Inventory Levels | Affecting factors, Perpetual Inventory Valuation | Significance | Advantages | Disadvantages. Property taxes on the factory building will be $9,000 per year. Inflation lowers the standard of living for people whose income does not increase as fast as the price level. Which among the following refers to areas where items are not stored in selected permanent locations? B. . D. 1-True, 2-True QUESTION 6 Which of the following would indicate an improvement in a company's financial position, holding other things constant? This would suggest that airline ticket prices are:Which of the following statements is most accurate about advanced economies?Economies experience a positive growth trend over the long run but experience significant variability in the short run.Modern economic growth refers to countries that have experienced an increase in:Consider This) Which of the following is an example of economic investment?Nike buys a new machine that increases shoe production.Harry's Pepperoni Pizza Parlor produced 10,000 large pepperoni pizzas last year that sold for $10 each. Which of the following results from firms holding inventories? A. Refer to the figure. D. Category mapping The expense of shifting the packed orders into vehicles that would ship them is known as ___. Which of the following statements best describes how firms respond to demand shocks under conditions of inflexible prices? This would result in a lower cash flow for the firm. 1-False, 2-True (Consider This) What is the difference between financial investment and economic investment? B. Suppose that an economy's output does not change from one year to the next, but the price level doubles. If the vendors are not reliable and the flow of raw materials cannot be ensured, there results a trend to hold buffer inventories in the form of raw materials or semi manufactured Work in Process inventories. Echs Station Headquarters List, 1-False, 2-False An incorrect inventory balance can result in an inaccurately reported value of assets . C) Demand shocks occur less frequently. Canvas Meaning In Bengali, Show AnswerHide AnswerAnswer: (D), 37. Finance questions and answers. Which of the following would an economist consider to be investment? State True or False: Second, the result of inventories offering an efficient buffer against the shock is recovered from the comparison of treated firms with relatively high or low levels of average inventories, in 2018. Multiple Choice. Show AnswerHide AnswerAnswer: (B), 11. Inventories are a component of the firm's working capital and as such represent a current account. To keep our patients and staff safe, and in alignment with hospital and government mandates, we have made the following changes to our visitor guidelines: As always, we'll make clinical decisions regarding follow-up appointments on an individual patient basis. C. Family grouping c. One disadvantage of the corporate form of organization is _____. Show AnswerHide AnswerAnswer: (A), 57. C. 1-True, 2-False 4. Firms can maintain production levels and adjust inventories in response to demand shocks. Doom Patrol Oyewah, The amount of investment is ultimately limited by the amount of, If prices of goods and services were free to quickly adjust, then, A negative demand shock would have no short-run effect on unemployment, Refer to the figure. B. Raw materials can be produced and extracted by a firm or can be purchased from outside the firm. A. B. Inventory carrying cost, or holding costs, is an accounting term that identifies all business expenses related to holding and storing unsold goods. Show AnswerHide AnswerAnswer: (A), 49. C. Pretax Profit ratio A. Use the following (partial) chart of accountsaccount numbers in parentheses: Cash (101); Accounts Receivable (106); Office Supplies (124); Trucks (153); Equipment (167); Accounts Payable (201); Unearned Landscaping Revenue (236); D. Tyler, Capital (301); D. Tyler, Withdrawals (302); Landscaping Revenue (403); Wages Expense (601), and Landscaping Expense (696). D. 1-False, 2-False Daud Kim Bio, a. Complete the given statement with one of the terms listed here. An example of a good accounting and inventory management system is Deskera. B. Which of the following statements best describes price flexibility in the economy?Prices tend to be sticky in the short run but become more flexible over time.Which of the following results from firms holding inventories?Firms can maintain production levels and adjust inventories in response to demand shocks.Which of the following is an example of a supply shock?A dramatic increase in energy prices increases production costs for firms in the economy.Which of the following countries would economists say definitively is achieving modern economic growth?Nigeria experiences a 2.7 percent increase in real GDP per person.When demand shocks lead to recessions, it is mainly due to:Prices for airline tickets change on average about once per month. For which of the following goods are services are prices least sticky? In the financial sector, inventory is defined as "the sum of the value of raw materials, fuels and lubricants, spare parts, maintenance consumables, semi-processed materials and finished goods stock at any given point of time".. S.E. A. Fordson Major Engine, Live Atc Des Moines, If you cannot answer a question, read the related section again. quantities, full load definitely reduces the transportation cost per unit per Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. Lady Luck Macbeth, Holding an inventory to make sure the production line will never run out of raw materials will ensure longer run in production line, hence lower the startup cost. b) Supplies and equipment. Pen type readers Multiple Choice The FIFO method of inventory valuation assumes that the first unit purchased is the first unit sold. State True or False: A. Min-max system Which of the following are the factors to be considered while calculating safety stock? Which of the following statements is true? 2. D. Idle time, OTC cycle Harley Davidson With Sidecar For Sale, The major statistics that provide macroeconomists a picture of the health of an economy include the following, except. Safety stock can be set in weeks or units of stock at the simplest level. Ff14 Ultros Server, But you should not feel alone. C. 2, 3 & 4 Outstanding importance in value The economy is much more susceptible to business cycle fluctuations. refer to unexpected changes in the desires of households and businesses to buy goods and services. C. Cost of goods sold, average inventory at cost 2. Prices tend to be sticky in the short run but become more flexible over time. Prices tend to be sticky in the short run but become more flexible over time. e. none of the above is true. 2. Physical inventory needs to be done at least once a year, and as often as once a month, depending on the probability of loss of items. Which of the following is the ratio of net profit to net sales? 30 Examples Of Embedded Systems, Grim Dawn Builds, State True or False Yamaha Outboard Carburetor Float Adjustment, C. Organise external management information Demand shocks occur with greater frequency . Question: Q1 Which of the following statements is CORRECT? Students who viewed this also studied Edmonds Community College ECON 202 Goods-in-transit to warehouses or customers (pipeline inventory) Regards, Saiyid. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.. An entity which provides insurance is known as an insurer, insurance company, insurance carrier, or . Economists and policymakers are generally more concerned about nominal GDP than real GDP. C. Grid mode 55. B. Product locator system A. D. Production-wide allocation An alteration to the method of setting up zones or areas in the depot and assigning it to one person to each area is called ___. firms are worried that frequent price changes would annoy consumers. Uae Gdp Per Capita, The economy is much more susceptible to business cycle fluctuations . If an economy has sticky prices and demand unexpectedly increases, you would expect the economy's real GDP to: firms are worried that frequent price changes would annoy consumers. Products such as cements, steel, building material 100 Reasons To Live, Drunk History Podcast, B) most rms have agreements with each other to x prices at prot-maximizing levels. Why would more centralized state or federal standards not be a good idea? In other cases inventory build up can happen due to bad quality. Aim High Dream Big We Gonna Make It Song, Show AnswerHide AnswerAnswer: (C), 39. A. A. 57. Distribution centers act as ___ storehouses of an organization. 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