Specialization increases the productivity of a nation's resources and allows for larger total output.
Answer:
(A) $425,000
(B) $24,350
Explanation:
(a) Average Operating Assets:
= (Beginning Operating Assets + Ending Operating Assets) ÷ 2
= ($390,000 + $460,000) ÷ 2
= $425,000
Therefore, the average operating assets is $425,000.
(b) Residual Income:
= Operating Income - (Minimum Rate of Return × Average Operating Assets)
= $66,850 - (10% × $425,000)
= $66,850 - $42,500
= $24,350
Answer:
The correct answer is letter "C": Profitable product lines may be dropped.
Explanation:
The decision of making a product in-house or relying on an outsourcing manufacturer is evaluated mainly by comparing the costs that handling a new production line carries. While outsourcing can save a company a great amount of money in <em>labor, equipment, materials, </em>and <em>knowledge</em>, quality control is not managed directly.
However, <em>a new line of components in-house implies incurring in most costs that could conflict the production of existing profitable product lines that could see their numbers reduce gradually until the product drops.</em>
Answer:
The correct answer is Geocentric.
Explanation:
According to administrative theory, Roberto presents a typical attitude of a geocentric manager, because he accepts the similarities and differences of national and foreign administrative policies, which allows him to find a balance with those practices that are most effective for the entity.
Otherwise it would be if he practiced an ethnocentric attitude, where he would discriminate the administrative practices of other countries, considering that those of his country of origin are superior, and that these can be exported at the same time as the goods and services of the organization.
Companies with interests abroad will probably have managers who have geocentric or ethnocentric perspectives. The geocentric attitude is the most convenient for managers of multinational companies, but it is also the most difficult to learn and accept.