ctivity 3 $ 113,000 setups 3,500 6,250 annual production and sales level of product a is 35,300 units, and the annual production and sales level of product b is 70,550 units. what is the approximate overhead cost per unit of product a under activity-based costing?

Marketing emphasis of a low-cost provider:

Low-cost providers generally emphasize low prices on their products or services compared to their rivals.

They aim to offer goods or services at a lower cost than their competitors, making them more affordable to the general public. To compete effectively, they tend to have a highly efficient cost structure in their business operations to ensure that they can maintain the lowest possible prices.

Moreover, they might also be less inclined to invest a lot in product development or in providing customized services. They have a larger market share by concentrating on high volume and low margin operations.

Due to their lower price point, they may not be as concerned with maintaining brand loyalty as their rivals.

Marketing emphasis of a best-cost provider:

A best-cost provider aims to offer a high-value product or service to the general public. They provide a product that has similar features and quality to a high-end product but at a lower price point.

To stay competitive, they tend to have a lean cost structure that enables them to maintain the lowest prices possible while still providing a high-quality product or service.

Best-cost providers invest more in product development and in providing customized services to their clients to differentiate themselves from their rivals.

By providing quality products at a fair price, they strive to build brand loyalty in the market. Consequently, the best-cost provider typically has a smaller market share than the low-cost provider but with a higher profit margin and a more loyal consumer base.

To learn more about product development, refer below:

https://brainly.com/question/16529144

#SPJ11

Sparkling Beverage has put into practice a product line expansion product development strategy.

Water that has been compressed with carbon dioxide gas to produce effervescence, or bubbles, is referred to as carbonated water, sparkling water, bubbly water, or fizzy water under many headings.

Where the carbonation comes from makes the biggest distinction between seltzer and sparkling water. If the carbonation is synthetic, the beverage is probably seltzer or club soda and is subject to the same regulations as soda. Water is considered sparkling if bubbles are present naturally and are present at the source.

To know more about  product development visit:-

https://brainly.com/question/16529144

#SPJ1

The MOST likely reason for women in developing countries to experience more economic hardships than women in developed countries is unequal status with men.

In many developing countries, women do not have equal access to education, job opportunities, or economic resources, and may be subject to discriminatory laws and cultural norms that limit their ability to participate fully in society. This can lead to women being concentrated in low-paying, informal jobs with little job security or benefits, and may also limit their ability to own property or access credit.

Conformity with dress codes, inability to care for male offspring, and inability to gather with other females are not likely to be major factors contributing to economic hardships for women in developing countries. While cultural norms and practices may contribute to gender inequality in some contexts, the primary barriers to economic empowerment for women in these settings are more likely to be structural and systemic, such as discrimination and lack of access to resources and opportunities.

Learn more about the economic hardships:

brainly.com/question/887494

#SPJ4

Risk is a situation that has variability in the outcomes. Thus, the correct option is ii: that has variability in the outcomes.

Risk is defined as the potential of an event or action to result in negative consequences. It's a state of uncertainty where some of the possible outcomes are negative, posing a threat to the objectives and goals of the project, program, or organization. It is the potential for something to go wrong or have a negative impact on the outcome.

Risk is a function of the probability of an event occurring and the consequences that result. A high-risk activity has a greater potential for negative outcomes than a low-risk activity. Thus, the correct option that describes risk as a situation is the option ii: that has variability in the outcomes.

To know more about Risk, refer here

https://brainly.com/question/30618006#

#SPJ11

Increasing international exchange in goods and services can run into the difficulty of having one offer that meets the needs of customers at differing income levels.

International trade or international exchange is the import and export of goods and services across international borders. It is a crucial aspect of globalization and the global economy as a whole.

Increasing international exchange in goods and services can run into difficulty due to the fact that one offer may not meet the needs of customers at differing income levels. This is because consumers with higher incomes are willing to pay more for quality products and services, while consumers with lower incomes may not be able to afford the same quality products and services. This creates a challenge for companies looking to expand their international trade as they must find ways to offer products and services that meet the needs of customers at different income levels.

Another difficulty with increasing international exchange is that there may be trade barriers or restrictions in place that limit or prevent certain goods and services from being imported or exported. These barriers can include tariffs, quotas, and other regulations that make it more difficult or expensive to trade across borders.

To know more about international exchange: https://brainly.com/question/15115779

#SPJ11

The M2 for the year  2009 is calculated as: M2 = Currency in Circulation + Checkable Deposits + Savings Deposits + Time Deposits + Money Market Funds. M2 = $863.7 + $829.1 + $4,812.0 + $1,187.5 + $791.1 = $9,483.4 billion.

M2 is a measure of money supply used by economists and central banks to track the amount of money circulating in an economy. It is a broader measure of money supply compared to M1, as it includes not only cash and checkable deposits but also certain types of savings deposits and money market mutual funds.

Currency in Circulation as a Percentage of M2 = (Currency in Circulation / M2) * 100. Currency in Circulation as a Percentage of M2 = ($863.7 / $9,483.4) * 100 = 9.1%

Learn more about M2 here:

https://brainly.com/question/31172010

#SPJ12

The process of wealthy landowners fencing off their land for private use and excluding others from using it was called enclosure.

The enclosure was a process that took place in England during the 18th and 19th centuries. Wealthy landowners, with the support of the government, enclosed previously common lands and turned them into private property, thus excluding others from using them. This practice had significant consequences for rural communities, as it forced small farmers and peasants off the land and into urban areas, where they had to find work in factories. Enclosure also led to the consolidation of landholdings, as larger landowners were able to purchase the lands of smaller landowners who could no longer compete. The practice of enclosure was controversial, with critics arguing that it created social and economic inequality, and led to the destruction of traditional rural communities.

learn more about wealthy landowners here:

https://brainly.com/question/4036405

#SPJ4

Resource dependency will limit the choices available when there is a shortage of resources while planning a project.

This is because fewer resources will mean that fewer options are available to choose from and any decisions-making must be made with limited resources in mind.

Resource dependency is an important consideration when planning a project, as it will shape the available options and what can be achieved within the parameters of the project.

For example, if the project budget is limited, then the project plan must be tailored to reflect this constraint.

This will mean that certain activities may not be possible, or the available activities must be adjusted to remain within the budget. Similarly, if the project timeline is limited, then the available resources must be managed in order to ensure the project is completed on time.

Overall, resource dependency is an important factor to consider when planning a project, as it will limit the available choices and must be taken into account in order to ensure the success of the project.

To know more about decisions-making click on below link:

https://brainly.com/question/28040234#

#SPJ11

True. Setting high switching costs is a competitive strategy aimed at retaining consumers and making moving to another product or service difficult. This is accomplished by erecting obstacles to entry or leave,

such as asking consumers to sign long-term contracts, charging hefty cancellation costs, or making data or information transfer difficult. Companies may efficiently safeguard their client base and decrease the possibility of competition by making switching costly or burdensome for customers. Yet, while high switching costs might help businesses in the short term, they can also have detrimental long-term repercussions. Consumers may grow unsatisfied with a lack of options or flexibility and seek alternatives, which may eventually lead to litigation.

learn more about costs  here:

https://brainly.com/question/30045916

#SPJ4

If you borrow $1000 from a bank for a year and have to pay $70 in interest for that year, your stated interest rate is 7%.

The stated interest rate is the interest rate that a borrower pays or earns at the beginning of a loan, as opposed to the effective interest rate, which is the actual interest paid or earned over a given time period.

If the interest rate owes the lender $1,000 for a year and has to pay $70 in interest, we can compute the stated interest rate as follows:

Stated interest rate = (Interest rate × Principal) ÷ Time

Interest rate = (Interest × Time) ÷ Principal

Interest rate = ($70 × 1) ÷ $1000 = 0.07 or 7%

Therefore, the stated interest rate is 7%.

To know more about interest rate, click on the link below:

https://brainly.com/question/13324776#

#SPJ11

The given coupon bond has a coupon rate of 6.55%. Yield to maturity (YTM) is the discount rate that makes the present value of all future cash flows equal to the current market price of the bond.

The current market price of the bond is $1,125.25. Therefore, we need to find the discount rate that equates the present value of all future cash flows to $1,125.25.

It is calculated as follows: Total present value = Present value of coupon payments + Present value of face value$1,125.25 = $32.75 x [1 - (1 + YTM / 2)-38] / (YTM / 2) + $1000 / (1 + YTM / 2)38The above equation cannot be solved by hand. We have to use a financial calculator or Excel spreadsheet to find the solution.

By using an Excel spreadsheet or financial calculator, we get the semi-annual yield to maturity of this bond is 5.14%.Therefore, the yield to maturity of the bond is 2 x 5.14% = 10.28%.Answer: Yield to maturity = 10.28% (approx).

To know more about  coupon bond refer here:

https://brainly.com/question/18803974#

#SPJ11

Personal issues do not belong on Slack. Slack is a communication app that is used by several offices to share information and communicate. It is easy to use, and it can be integrated with other productivity tools. However, it is essential to be aware of some advice to use the app effectively.

The following advice would you give to Janelle about using Slack:

When using Slack, you should always keep in mind that the app is monitored and archived by the employer. As such, you should always ensure that you only share work-related information on the app. Anything personal should be kept private. It is also essential to use Slack when there are high volumes of information to share since it is much easier to organize messages and share files.

Emojis are not always the best response to discussions, depending on the nature of the conversation. As such, you should only use emojis where appropriate. It is also essential to use private channels to make friends or share confidential information with a few people. However, ensure that the information is work-related or within the company's policies.

Learn more about work-related information: https://brainly.com/question/683722

#SPJ11

Supplier relationship management is a comprehensive approach for locating and sourcing key suppliers, so that an organization can leverage its consolidated purchasing power to find the best possible values in the marketplace is true.

Hence, the correct answer is true.

Several businesses implement supplier relationship management (SRM) as a business strategy to create connections with suppliers that are advantageous to both parties. By locating the ideal suppliers to engage with, well-designed SRM solutions assist businesses in increasing cooperation.

For instance, if the business manufactures automobiles, completed tyres from a tyre manufacturer are supplied for installation in those automobiles. They may also work with a material supplier that delivers the aluminium for a component that the automaker needs forge in order to make their automobile.

To know more about SRM visit:

https://brainly.com/question/29749961

#SPJ1

The change in price for product Q cannot be directly determined solely based on the information provided in the student question. However, I can give you some insights on how an increase in production might impact the price.

In general, when the supply of a product increases, the price may decrease due to the increased competition and availability of the product in the market. In this case, the industry produced 700 units last quarter, and a new producer has entered the market adding 120 units, bringing the total production to 820 units this quarter.

While this increased production could potentially lead to a decrease in price, other factors, such as changes in demand, production costs, and the overall economics environment, should also be considered when predicting price changes. Furthermore, it is mentioned that a higher price is expected this quarter, which implies that there might be additional factors at play affecting the price, such as increased demand or reduced production costs.

To accurately predict the change in price, a more comprehensive analysis considering all relevant factors would be needed. This may include evaluating market trends, understanding consumer preferences, and conducting a thorough supply and demand analysis.

for more such question on economics

https://brainly.com/question/17996535

#SPJ11

As per the given sentence "andrew can use time most efficiently by spending the same amounts of time on swimming, biking, and running", it best illustrates the basic principle of "all choices have opportunity costs". So, the correct option is all choices have opportunity costs.What is the basic principle of "all choices have opportunity costs"?

All choices have opportunity costs is a basic principle of individual choice. It suggests that if you choose one option, you must give up some other options. Opportunity costs can be defined as the cost of the next best option that must be given up when a decision is made. Opportunity costs are the benefits that are foregone or sacrificed as a result of selecting one choice over another. Therefore, it is important to assess opportunity costs before making a decision so that you can make the most of your resources. When selecting between alternatives, the opportunity cost is the benefit foregone that might have been obtained from the next best option. Opportunity cost is an important concept to consider while making economic decisions because it helps you to make the most of your resources.

for more such question on opportunity

https://brainly.com/question/1549591

#SPJ11

If businesses in Mountainia postpone $12 billion of their planned investments and save $2.4 billion due to an MPS of 0.2, the maximum expected change in GDP would be a decrease of $60 billion.

The economic outlook in Mountainia. Suppose that businesses in Mountainia postpone $12 billion of their planned investments. We need to determine the maximum expected change in GDP if its marginal propensity to save (MPS) is 0.2.

Step 1: Calculate the Marginal Propensity to Consume (MPC)
MPC = 1 - MPS
MPC = 1 - 0.2
MPC = 0.8

Step 2: Calculate the spending multiplier
Multiplier = 1 / (1 - MPC)
Multiplier = 1 / (1 - 0.8)
Multiplier = 1 / 0.2
Multiplier = 5

Step 3: Calculate the maximum expected change in GDP
Change in GDP = Multiplier × Change in Investment
Change in GDP = 5 × (-$12 billion)
Change in GDP = -$60 billion

The maximum expected change in Mountainia's GDP due to businesses postponing $12 billion of their planned investments and having an MPS of 0.2 is a decrease of $60 billion.

To know more about Marginal Propensity to Consume (MPC)

visit:

https://brainly.com/question/28249690

#SPJ11

The following has a positive relationship with per-capita gross domestic product (GDP) per-person carbon dioxide emissions.

The macroeconomic indices of GDP and consumer spending are positively correlated with one another.

Height and weight are two variables that have a positive association. In general, taller people are heavier. An rise in one measure is linked to a decrease in the other when there is a negative correlation between the two variables.

India's Sikkim area has the highest GDP per capita. Sikkim's GDP per person stood at 541,544 Indian rupees as of 2021. The NCT of Delhi, Karnataka, Haryana, and Telangana are also among the top 5 regions.

To Know more about macroeconomic

https://brainly.com/question/30044582

#SPJ1

Practical Capacity is the maximum level of operations at maximum efficiency. Practical capacity is the denominator-level concept that is the maximum level of operations at maximum efficiency.

As opposed to theoretical capacity, practical capacity considers factors such as downtime for maintenance, repairs, and other unavoidable operating interruptions.

Practical capacity is often calculated in order to determine a company's level of output. It is the amount of capacity that can be used to satisfy customer demand on a long-term basis.

This is in contrast to other measures of capacity, such as theoretical capacity, which looks only at what could be done under ideal circumstances.

Therefore, the statement "Practical capacity is the maximum level of operations at maximum efficiency" is correct.

To learn more about practical capacity, refer below:

https://brainly.com/question/30646148#

#SPJ11

Implicit costs are those for which no money is expressly paid. These expenses are related to using assets that the company already possesses, such as capital, land, and entrepreneurialism.

Costs are the out-of-pocket expenses a person or business makes when producing or acquiring goods and services. These costs could include overhead, administrative charges, and depreciation in addition to direct expenditures like labour, materials, and equipment. As it directly affects profitability and sustainability, understanding and managing expenses is an essential component of financial planning and management. Costs are measured and allocated using a variety of cost accounting techniques, including activity-based costing, job costing, and process costing. Analyzing cost behaviour, including constant and variable costs, can also aid in the optimisation of operations and the formulation of wise business decisions.

Learn more about  costs here:

https://brainly.com/question/29358512

#SPJ4

In staff management and development, I've learned the importance of effective communication, teamwork, and ongoing training. When applying these concepts to my own job search, I would focus on showcasing my communication and teamwork skills, as well as my commitment to continuous learning and professional growth.

Staff management refers to the process of recruiting, training, supervising, and motivating employees to maximize their performance and achieve the goals of the organization.

On the other hand, staff development is an ongoing process that prepares employees to meet the changing demands of their job and improve their skills and knowledge.

Learn more about management and development at

https://brainly.com/question/30436041

#SPJ11

Policies based on ABC analysis might include investing more in supplier development for A items. The correct option is C.

Based on the consumption values of inventory items, a method called ABC analysis is used to categorize the goods. The worth of an object consumed over a given time period, such a year, is referred to as its consumption value. The correct option is C.

The greatest yearly consumption value commodities are those with the letter A. They are made up of a limited number of ingredients, yet their consumption value is great. B things are cross-class goods. Their consumption levels are higher compared to C goods than to A products, however they are lower. The least expensive things are in category C. The percentage of lines in this class is rather high, but their consumption figures are also relatively low. The correct option is C.

Learn more about Inventory here:

https://brainly.com/question/25947903

#SPJ4

According to Sage, 90% of sneakers and other sporting goods sold in the US are imports from foreign countries. The correct option is A.

The United States became the world's top importer of sports equipment in 2020 after importing $9 billion worth of it. Sports Equipment was the 49th most imported commodity into the United States that year. Sporting equipment is mostly imported into the United States from China, Mexico, Vietnam, and Canada. The correct option is A.

Sporting goods imports to the United States from around the world increased by almost 100% to a value of US$3.7 billion for the first three months of 2021, compared to US$1.9 billion for the same period of 2020, as a result of lockdowns caused by COVID-19 in sporting venues and gyms, as well as the rise in consumer health consciousness. The correct option is A.

Learn more about Imports here:

https://brainly.com/question/13663581

#SPJ4

The answer is therefore $100. The difference between the maximum price a consumer is prepared to pay and the final amount they pay is known in economics as "consumer surplus."

The difference between each person's utmost willingness to pay and the actual price of $80 is known as the consumer surplus. As a result, each person's consumption surplus is:

John: $150 - $80 = $70

Jill: $100 - $80 = $20

Ruth: $90 - $80 = $10

Gretchen: Since she won't pay more than $60, $60 - $80 equals -$20.

Overall consumer surplus is equal to $100 ($70 + $20 + $10 + $0).

The answer is therefore $100.

Learn more about consumption surplus here:

https://brainly.com/question/15729473

#SPJ4

To earn 12% on their money, the creditor should accept an immediate payment of $892.86.

To determine the amount that a creditor should accept in payment immediately, we need to calculate the present value of the future payment using a discount rate of 12%. The present value of a future payment is the amount of money that would need to be invested today to have enough money to pay the future payment.

The formula for present value is

Present Value = Future Value / (1 + r)^n

Where:

- r = the discount rate

- n = the number of periods

- Future Value = the amount of the future payment

Assuming that the future payment is $1,000 and it will be made one year from now, we can plug these values into the formula to get

Present Value = $1,000 / (1 + 0.12)^1

Present Value = $892.86

Therefore, the creditor should accept a payment of $892.86 immediately to earn 12% on their money. This is the present value of the future payment of $1,000 discounted at a rate of 12% for one year.

To know more about the Creditor, here

https://brainly.com/question/28205794

#SPJ4

The current share price of Synovec Corporation is $47.87.

The formula to calculate the current share price is given below:

Current Share Price = Dividend per share / (required return - dividend growth rate)

Given that,

Dividend per share (D0) = $3.45

Dividend growth rate (g1) = 28%

Growth rate falling off to a constant (g2) = 7.4%

Required return (R) = 16%

The dividend is expected to grow at a rate of 28% for the next three years, and then the growth rate will fall to a constant 7.4%.

We know that the dividend for the next 3 years is as follows:

D1 = D0 (1 + g1)

D2 = D1 (1 + g1)

D3 = D2 (1 + g1)

Hence,

D1 = $3.45 (1 + 0.28) = $4.41

D2 = $4.41 (1 + 0.28) = $5.64

D3 = $5.64 (1 + 0.28) = $7.22

Now, we can calculate the dividend for the subsequent years with the help of the constant growth rate formula.

D4 = D3 (1 + g2) / (R - g2)

D4 = $7.22 (1 + 0.074) / (0.16 - 0.074)

D4 = $7.86

Using the dividend discount model formula, we can find out the current share price.

Current Share Price = Dividend per share / (required return - dividend growth rate)

Current Share Price = [$3.45(1+0.28)]/[0.16−0.28(1−3)] + [$4.41(1+0.28)^2]/[0.16−0.28(1−2)] + [$5.64(1+0.28)^3]/[0.16−0.28(1−1)] + [$7.22(1+0.074)]/[0.16−0.074]

Current Share Price = $47.87

Therefore, the current share price is $47.87.

To know more about current share price click here:

https://brainly.com/question/28539863

#SPJ11

The annual profit plan of Tioga Company that manufactures sophisticated lenses and mirrors used in large optical telescopes are:

Material-handling1 (One lens)= $2,000.

Material-handling2 (One mirror)= $2,000.

Material-handling3 (Under ABC) = $500.

Material-handling4 (Under ABC) = $1,500.

Activity-based costing (ABC) is a costing system that identifies the cost drivers for overhead costs and allocates those costs to the products or services that create them.

It is a more accurate way to assign costs to products than traditional costing systems that rely on arbitrary allocation bases.

ABC allows companies to understand the true costs of their products or services and make better pricing and cost-cutting decisions.

1. Under a costing system that allocates overhead on the basis of direct-labor hours, the material-handling costs allocated to one lens would be:

Total direct labor hours per unit for lenses = 200 hours per unit.

Total material-handling (MH) costs = $50,000.

Therefore, the material-handling costs allocated to one lens would be:

Overhead rate = Total budgeted overhead cost / Total budgeted labor hours

=  [tex]\frac{50,000}{(200 x 25) }[/tex]

= $10 per direct labor hour.

Material-handling costs allocated to one lens = Overhead rate × Direct labor hours per lens

= $10 × 200

= $2,000.

2. Under a costing system that allocates overhead on the basis of direct-labor hours, the material-handling costs allocated to one mirror would be:

Total direct labor hours per unit for mirrors = 200 hours per unit.

Total material-handling costs = $50,000.

Therefore, the material-handling costs allocated to one mirror would be:

Overhead rate =  [tex]\frac{Total budgeted overhead cost}{Total budgeted labor hours }[/tex]

=  [tex]\frac{50,000}{(200 x 25) }[/tex]

= $10 per direct labor hour.

Material-handling costs allocated to one mirror = Overhead rate × Direct labor hours per mirror

= $10 × 200

= $2,000.

3. Under activity-based costing (ABC), the material-handling costs allocated to one lens would be:

Cost driver for the material-handling activity is the number of material moves.

Lenses Mirrors

Units produced 25 25.

Material moves per product line 5 15.

Total material moves = (25 × 5) + (25 × 15) = 500.

Total material-handling costs = $50,000.

Therefore, the material-handling costs allocated to one lens would be:

Material-handling overhead rate = [tex]\frac{Total budgeted overhead cost}{Total budgeted material moves }[/tex]

= [tex]\frac{50,000}{500 }[/tex]

= $100 per material move.

Material-handling costs allocated to one lens

= Material-handling overhead rate × Number of material moves for one lens

= $100 × 5

= $500.

4. Under activity-based costing (ABC), the material-handling costs allocated to one mirror would be:

Cost driver for the material-handling activity is the number of material moves.

Total material moves = (25 × 5) + (25 × 15) = 500.

Total material-handling costs = $50,000.

Therefore, the material-handling costs allocated to one mirror would be:

Material-handling overhead rate = [tex]\frac{Total budgeted overhead cost}{Total budgeted material moves }[/tex]

= [tex]\frac{50,000}{500 }[/tex]

= $100 per material move.

Material-handling costs allocated to one mirror = Material-handling overhead rate × Number of material moves for one mirror

= $100 × 15

= $1,500.

Learn more about material handling cost here:

https://brainly.com/question/20598911

#SPJ11

A business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size (set by the Small Business Administration) in terms of employees or annual receipts is known as a small business.

Small businesses may be sole proprietorships, partnerships, or corporations, and they may operate in almost any industry.

You can learn more about small business at

https://brainly.com/question/17128827

#SPJ11

The item that is not included in the GAAP financial statement income tax footnotes effective tax rate reconciliation is hypothetical tax on book income at the US federal corporate tax rate.

Generally accepted accounting principles (GAAP) are a set of accounting guidelines and standards that businesses must adhere to when preparing financial statements.

These principles are critical to ensuring the accuracy and consistency of financial statements across industries and companies. GAAP covers topics such as revenue recognition, asset valuation, and financial statement presentation. The primary goal of GAAP is to ensure that financial statements provide reliable, relevant, and useful information to stakeholders.

What is income tax footnotes? An income tax footnote is a section of a company's financial statements that provides information about its income tax obligations.

This section usually includes information about the company's income tax rate, as well as any deferred tax liabilities or assets that the company may have. Income tax footnotes are often included in the notes to the financial statements, which are typically located at the end of the financial statements.

What is an effective tax rate reconciliation? An effective tax rate reconciliation is a schedule that shows the calculation of a company's effective tax rate.

This schedule typically reconciles the company's actual tax expense with its expected tax expense. It may also show the effects of temporary and permanent differences between book income and taxable income on the company's effective tax rate.

Answer: The item that is not included in the GAAP financial statement income tax footnotes effective tax rate reconciliation is hypothetical tax on book income at the US federal corporate tax rate.

To know more about GAAP refer here:

https://brainly.com/question/24107590#

#SPJ11

The value of the next best option that is lost when that option is chosen. The opportunity cost is, in other words, what you give up in order to acquire something else.

Opportunity cost is the value of the next best option that must be given up in order to follow a specific course of action or decision. It is the price of any choice in terms of the best alternative passed up, and it stands for the compromises that people, organisations, and governments must make when allocating limited resources. The gains a company might have gained if it had chosen to invest in a different project, for instance, would be the opportunity cost if it chooses to engage in a new project. As it enables people and organisations to weigh trade-offs and make wise decisions, an understanding of opportunity cost is crucial for smart economic decision-making and resource allocation.

Learn more about  opportunity cost here:

https://brainly.com/question/16910681

#SPJ4

What is the definition of opportunity cost, and how does it relate to the acquisition of a certain item or choice?

If a firm adopts a residual distribution policy. The better the firm's investment opportunities, the lower its payout ratio should be. The statement is true.

A residual distribution policy is one in which the firm first invests in profitable projects that can generate high rates of return.

Once the company has completed these profitable projects, it allocates the rest of its profits to distribute among shareholders or pay dividends in proportion to the total amount of profits earned.

As a result, when a company has a significant amount of profitable projects, it should distribute fewer profits to shareholders or pay fewer dividends, so that the earnings can be used for future profitable projects.

Therefore, a company's payout ratio should be lower if it has better investment opportunities.

To know about residual distribution refer here:

https://brainly.com/question/27376566#

#SPJ11