Which of the following transactions takes place in the secondary market?
i. prude mfg. sold shares of plastics tech on NASDAQ
ii. Pete purchased shares of GPT from his friends, George.
iii. Connie bought her first shares in a public company.
iv. alpha Inc. a publicly owned company, bought shares of New Town Press, also a publicly owned company
v. Valerie purcahsed newly issued shares of Velcro, Inc.

If the law requires apartment building owners to lower rent, the law of supply predicts that, other things constant, the quantity supplied will decrease.      

Supply is a market concept that refers to the total amount of goods and services produced and offered for sale at a specific price level. It represents the entire relationship between quantity supplied and price for a particular good, service, or group of goods or services.

According to the law of supply, as the price of a product increases, the quantity supplied also rises, ceteris paribus, and as the price falls, the quantity supplied decreases.    

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Purchasing manager Chelan is performing benchmarking by comparing her situation with that of purchasing managers in other similar-sized companies.

What is benchmarking?

Benchmarking is a process that entails comparing your company's performance against that of other companies or a set of best practices. It's a vital tool that allows you to identify areas where you can improve performance and gain a competitive advantage.

A company can benchmark in the following ways:

Internal benchmarking: It involves comparing the performance of a company's various divisions or departments with one another.

External benchmarking: It involves comparing a company's performance with that of other companies in the same industry or sector.

Functional benchmarking: It entails comparing similar processes in different sectors.

Cross-industry benchmarking: It involves comparing a company's processes with those of businesses in unrelated industries.

In this case, purchasing manager Chelan is performing external benchmarking by comparing her situation with that of purchasing managers in other similar-sized companies.

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The appropriate section in the statement of cash flows for reporting the receipt of cash dividends from investments in securities is the cash flow from investing activities. What is the statement of cash flows? The statement of cash flows is one of the four main financial statements. This report specifies how much money has flowed in and out of a company over a certain period of time.

It offers insight into the cash balance of a business and how that cash is being used. The statement of cash flows, like the other financial statements, provides investors and creditors with valuable information about the company's financial condition. They use it to assess the company's ability to pay dividends and pay off debts.  

It is divided into three parts: cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities. Cash flow from investing activities Cash flow from investing activities is the segment of the statement of cash flows that shows cash inflows and outflows as a result of investment activities.

The purchase and sale of assets such as equipment, buildings, and land are all examples of investment activities. Investment in securities is also an investment activity. The receipt of cash dividends from investments in securities is therefore included in the cash flow from investing activities.

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In this scenario, it is important to understand the key terms related to market demand. The law of demand states that with other things being equal, the quantity of a good demanded by buyers falls when the price of that good rises.

A demand curve is a graphical object showing the relationship between the price of a good and the amount of the good that buyers are willing and able to purchase at various prices.

A demand schedule is a table showing the relationship between the price of a good and the amount that buyers are willing and able to purchase at various prices.

If Edison's boss is interested in a graphical presentation of the relationship between the price and quantity of televisions demanded, Edison should construct a demand curve using the data provided.

However, if Edison's boss is more interested in the detailed numbers used to construct this visual representation, Edison should instead create a demand schedule. This will provide a detailed breakdown of the price and quantity of televisions demanded at various price points.

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As the overall amount of money held in savings accounts increases, in financial markets, the interest rate paid on savings would likely decrease.

In financial markets, the interest rate paid on savings accounts is determined by the forces of supply and demand. Assuming that all else remains equal, an increase in the overall amount of money held in savings accounts would lead to an increase in the supply of loanable funds. This is because the money held in savings accounts is available for banks to lend out to borrowers who need it for investment or other purposes.

As the supply of loanable funds increases, the interest rate paid on savings accounts would be expected to decrease, since banks would have more money to lend out and would need to attract borrowers by offering lower interest rates. Therefore, the increase in the overall amount of money held in savings accounts would likely lead to a decrease in the interest rate paid on savings accounts, all else being equal.

It's worth noting that this relationship is not always linear, and other factors can also affect the interest rate paid on savings accounts, such as inflation expectations, government policies, and global economic conditions.

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One reason small business owners will be able to better compete with larger businesses in the future is that they have the potential to adapt more quickly to market changes than larger companies.

A small business is typically more flexible and agile than a larger corporation, allowing it to respond more quickly to changes in the market. Small businesses may be more adaptable to the needs of their customers, and they may be able to implement changes more rapidly than larger businesses.

This can make small businesses more appealing to customers who value agility and responsiveness over brand name recognition or a wider product range.

Larger businesses, on the other hand, may be slower to adapt to changes in the market. They may have more complicated procedures and decision-making processes, which can impede innovation and flexibility. Additionally, larger businesses may have a reputation for being impersonal or bureaucratic, which can turn off some customers.

Small business owners, on the other hand, have the freedom to make their own choices and pivot quickly when necessary. This can enable them to respond quickly to new opportunities, changes in customer behavior, and other market shifts.

By staying nimble and open to change, small business owners can compete with larger businesses on their own terms.

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George paid two discount points upfront when he took out a 30-year loan for $60,000 at a 4% interest rate. The dollar value of the discount points was $1,200.

A discount point is a one-time fee paid to the lender at closing in exchange for a reduced interest rate. One discount point is equal to 1% of the loan amount, so for George's loan, two discount points would be equal to 2% of the loan amount, or $1,200. Therefore, the dollar value of the discount points was $1,200.

To explain further, when George took out the loan, he paid the lender two discount points (equal to 2% of the loan amount), in exchange for the lower interest rate. This $1,200 fee is known as the dollar value of the discount points. By paying the discount points, George reduced his interest rate from 4.5% to 4%, saving him money in the long run.

When considering taking out a loan, it is important to weigh the cost of the discount points with the savings gained by the lower interest rate. If the interest rate is reduced enough, the borrower may be able to save more money in the long run by paying the upfront cost of the discount points.

However, if the savings are too small, then the borrower may decide to pass on the discount points and pay the higher interest rate instead.

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The four primary reasons that companies hold inventory are:

Inventory is an essential part of the supply chain process, and companies must carefully manage it in order to maximize profits and ensure customer satisfaction. Having inventory on hand allows companies to provide products and services to customers on time and without interruption.

It also enables them to take advantage of quantity discounts and manage seasonal demands. Inventory must also be closely managed to prevent losses due to damage, expiration, or obsolescence. Effective inventory management allows the company to become more efficient.

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The statement "the triple bottom line metric is used for measuring the financial results of the company, but does not take into account equity, economic or environmental considerations" is false.

What is the triple bottom line? The triple bottom line (TBL) is a concept that evaluates businesses' success by three bottom lines: social, economic, and environmental. This concept originated in the late 1990s, and it is now utilized by several corporations, non-profit organizations, and government agencies.

The triple bottom line is an accounting method that assesses an organization's efficiency in terms of the three factors listed above. As a result, it takes into account both the environmental and social impacts of a company's economic activities. To put it another way, the TBL approach considers how businesses can be beneficial to people, the environment, and their earnings.

The concept's major aim is to assist businesses in moving from a profit-centred approach to one that considers the social and environmental impacts of their operations.

Furthermore, the triple-bottom-line approach encourages corporations to pursue sustainable economic growth while also promoting social and environmental responsibility.

Therefore, the statement given in the question is false since the triple bottom line metric is specifically designed to take into account equity, economic and environmental considerations.

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The credit card company charges an interest rate of 1.5% per month. Therefore, the monthly interest rate would be calculated as follows: 1.5/100 = 0.015

After that, we can use the formula for calculating the effective annual interest rate.

Effective annual interest rate (EAR) = (1 + (i/n))^n - 1

Where:

i = interest rate per period

n = number of compounding periods in a year

Effective annual interest rate (EAR) = (1 + (0.015/1))^1 - 1= 0.015 = 1.5%

Thus, the effective annual interest rate is 1.5%.

The interest rate on credit cards can be pretty high, but there are a few things you can do to reduce the amount of interest you pay.

For example, if you are able to pay off your credit card balance in full every month, you can avoid paying interest altogether.

Additionally, you can shop around for credit cards with lower interest rates, or consider transferring your balance to a card with a 0% introductory rate.

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The restaurant's total daily payroll cost is $1,412.50

Days on which the restaurant is open = 24

The monthly fixed payroll cost = $31,800

Daily variable payroll cost = $2,100

Calculating the daily variable payroll cost:

Daily variable payroll cost = Monthly variable payroll cost / Number of days per month

= 2,100 / 24

= 87.50

Calculating the total daily payroll cost:

Total daily payroll cost = Daily fixed payroll cost/ Number of days + Daily variable payroll cost

= 31,800 / 24 + 87.50

= 1,325 + 87.50

= 1,412.50

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False. When a nation is too small to affect world prices, allowing free trade will never increase total surplus in that country, regardless of whether it imports or exports as a result of international trade is false statment.

Free trade is a commercial policy in which countries allow goods to be traded without any restrictions, such as import tariffs or taxes. As a result of free trade, goods and services may be made available to people all over the world at a lower cost.

It's worth noting that free trade isn't always beneficial for all parties involved, and it can be difficult to make decisions about what's best for a nation or a specific industry.

If a country is small and has no influence over world prices, trade barriers may do more damage than good, preventing it from accessing goods that it would have had access to otherwise.

It is difficult for small nations to influence global prices and exert any control over the international trade system, so free trade is often the best option. Free trade will always increase total surplus in a nation, regardless of whether it imports or exports goods as a result of international trade, according to this point of view.

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The form of business relationship that allows a firm to grant patent rights, trademark rights, and the rights to use technological processes to another company in a foreign country is licensing.

Licensing is a method of transferring technology from one firm to another. It is a business arrangement in which one business (the licensor) allows another company (the licensee) to utilize its intellectual property, such as patents, trademarks, copyrights, or trade secrets, in exchange for royalty payments.

The licensee is free to use the technology to manufacture and sell the product with the licensor's brand name.The company that grants patent rights, trademark rights, and the rights to use technological processes to another company in a foreign country is known as a licensor. This sort of company provides a license to the other company to use its trademark, patent, or technology.

In addition, the licensee may utilize the product's sales or marketing strategy to boost its own sales by following the licensor's directions

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Key Success Factors (KSFs) are those factors that are essential to the success of a company or organization. The factors that distinguish one organization from another are its KSFs. The factors are critical for an organization's long-term growth, profitability, and sustainability.

They are critical for the success of a company or organization. Therefore, they must be assessed accurately for the craft beer industry. The following are some key success factors (KSFs) that are important for the craft beer industry:

1. High-Quality Ingredients
The key success factor for the craft beer industry is the use of high-quality ingredients. Customers are concerned about the ingredients used in the production process. As a result, using high-quality ingredients is a significant competitive advantage for the craft beer industry.

2. Innovative Packaging
The packaging of the product is an important success factor in the craft beer industry. The industry has experienced a surge in the number of products available in the market. Innovative packaging will help the craft beer industry stand out from the competition.

3. Consistency and Quality Control:  In the craft beer industry, consistency and quality control are critical success factors. Customers expect the beer to have a consistent flavor and texture. Consistency and quality control are important for building customer loyalty.

4. Branding: Branding is a key success factor in the craft beer industry. The craft beer industry has a large number of breweries, and it is critical to create a strong brand to stand out in the market.

5. Distribution: Distribution is an important success factor in the craft beer industry. The industry relies heavily on distribution channels, and effective distribution is necessary to reach customers.

To assess these factors in the craft beer industry, one must analyze the industry's performance, customers' preferences, and competition. The factors can be analyzed using data analytics and market research. The analysis will provide insights into the factors that are most important for success in the industry.

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Suppose that the Federal Reserve tightens the money supply in order to reduce inflation. In the long run, this policy most likely will cause nominal interest rates to increase.

The total amount of money circulating in the economy at a particular time is referred to as the money supply. M1, M2, and M3 are the three most prevalent measures of money supply. The Federal Reserve System is in charge of regulating the money supply.

It does so primarily by altering interest rates to affect the volume of credit available in the economy.

The Federal Reserve System, or the Federal Reserve, is the United States' central banking system. It is in charge of the United States' monetary system, supervising banks and protecting consumers' credit rights, and maintaining the stability of the financial system by regulating the money supply.

In order to tighten the money supply, the Federal Reserve System raises interest rates, which decreases borrowing and, as a result, reduces the supply of money. When the Federal Reserve System loosens the money supply, it lowers interest rates, which increases borrowing and, as a result, raises the supply of money.

When the Federal Reserve System lowers interest rates, it promotes borrowing, which has the potential to raise the supply of money. Conversely, when interest rates are increased, borrowing is discouraged, which lowers the supply of money.

In the long term, if the Federal Reserve tightens the money supply in order to reduce inflation, nominal interest rates are likely to rise since it reduces borrowing, and if it loosens the money supply, nominal interest rates are likely to fall because it increases borrowing.

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In the second quarter of 2016, US retailers were buying shoes from Mexico at the time, so the value of shoes would contribute to US GDP. Shoes only contribute to US GDP when sold to consumers. Therefore, this shoe will not contribute to US GDP until his third quarter of 2016.

In the context of GDP calculation, only the value of final goods and services produced within a country's borders during a given time period is counted. In this scenario, the 100 pairs of shoes were produced in Mexico and not within the United States. Therefore, the production of these shoes is not included in the US GDP calculation.

However, once the American retailer sells the shoes to a consumer in the third quarter of 2016, the value of the shoes will be included in the GDP calculation for that quarter. This is because the final sale of the shoes to the consumer represents a transaction within the United States, and thus adds to the country's GDP.

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The tool specifically designed to support incident responders by allowing unified, automated responses across an organization is known as an incident response platform.

This platform is used to quickly detect, investigate, and respond to security incidents by providing a unified environment for incident responders.

It also helps to create an automated process for responding to security incidents and prevents data loss, reduces the time required to investigate, and helps organizations to stay compliant with regulatory requirements.

An incident response platform automates the investigation process and helps organizations to quickly identify the cause of the incident. It collects data from a variety of sources, including endpoints, log files, and third-party systems. This data is analyzed to detect anomalies, which can be used to help determine the source of the incident.

The platform also provides security professionals with tools to respond to incidents quickly, such as containment, eradication, and recovery. Additionally, it can provide detailed reports to be used in investigations and post-incident reviews.

Overall, an incident response platform helps organizations to respond quickly and efficiently to security incidents by providing a unified environment for incident responders and automating the investigation process.

It collects data from multiple sources, helps to identify the source of the incident, and provides security professionals with the tools they need to respond quickly and effectively.

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When the management of a business is conducted by individuals other than the owners, the business is most likely to be a corporation.

Corporation is an artificial person that is created by a group of people that is separated from the people who have created it. It is created by the authority of law and is a separate entity from the individuals who have created it. A corporation is the most formal business structure.

It is a legal entity that is separate from its owners. It is an entity that is created by law that acts as a separate entity from the people who have created it.The people who own the corporation have limited liability in it. They only lose the amount of money that they have invested in the corporation.

Corporations have a lot of advantages and disadvantages as a type of business. The corporation's advantages include limited liability, easy access to capital, and perpetual existence. Its drawbacks are that it's heavily regulated, expensive to form, and requires a lot of formalities to be maintained.

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The amount that should be reported as a source of cash under cash flows from investing activities is $99,000.

When a machine with a cost of $146,000, accumulated depreciation of $93,000, and current year depreciation expense of $21,000 is sold for $46,000 cash, the amount that should be reported as a source of cash under cash flows from investing activities is the difference between the cash received from the sale of the machine and the net book value of the machine.

To calculate the net book value of the machine, we first need to subtract the accumulated depreciation from the cost of the machine. So, the net book value of the machine is $146,000 - $93,000 = $53,000.Next, we subtract the net book value of the machine from the cash received from the sale of the machine to find the amount that should be reported as a source of cash under cash flows from investing activities. So, $46,000 - $53,000 = -$7,000. Since the result is negative, it indicates that the sale of the machine generated a cash outflow rather than a cash inflow.

However, since we are asked to report the amount as a source of cash, we take the absolute value of the result to get $7,000.Finally, we add the current year depreciation expense of $21,000 to this result to get the final answer: $7,000 + $21,000 = $28,000. But we need to remember that this amount is negative since it represents a cash outflow. Therefore, the final answer is $99,000 (positive value of $28,000).

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The retail shop owner should be pursuing a cost leadership strategy as part of her general business-level strategy.

Cost leadership strategies focus on achieving lower costs than competitors in order to be competitive in the market and to offer customers lower prices. The retail shop owner can pursue this strategy by minimizing the cost of labor and overhead, such as by working alone and adjusting store hours to capitalize on busy days. Additionally, the retail shop owner should focus on efficient production and distribution processes to minimize costs.

The shop owner can also differentiate her product offering from that of her larger competitors by offering unique or exclusive items, or through improved customer service. This will create a competitive advantage for her business and can help her attract and retain customers.

By pursuing a cost leadership strategy, the retail shop owner can remain competitive and increase her profits by offering her customers low prices. She can also differentiate her products and services from those of her competitors, which can help her attract and retain customers. Ultimately, her goal should be to create a successful and sustainable business by achieving a lower cost structure than her competitors, offering unique or exclusive products, and delivering exceptional customer service.

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The following items are adjusted while calculating the cash flows from operating activities under the indirect method:

Additions: Depreciation and amortization expenses; Provision for bad debts; Deferred tax; Interest and loss on disposal of a fixed asset.

Deductions: Increase in the working capital. Provision for unearned revenue; Gain on disposal of a fixed asset.

In the Indirect Method, the items that would not be adjusted to net income when computing cash flows from operating activities are cash received from the sale of building. It is one of the items that are not considered in the operating activity of the indirect method. Here's how:

Cash flow from operating activities:

In this method, the net income is adjusted for non-cash expenses and changes in working capital accounts to calculate the cash flow from operating activities.

The following items are adjusted while calculating the cash flows from operating activities under the indirect method:

Additions: Depreciation and amortization expenses; Provision for bad debts; Deferred tax; Interest and loss on disposal of a fixed asset.

Deductions: Increase in the working capital; Provision for unearned revenue; Gain on disposal of a fixed asset.

When computing cash flows from operating activities, the indirect method is used to reconcile net income to the actual cash flow. It is a less precise method than the direct approach since it entails adjusting net income by non-cash items and fluctuations in non-cash working capital items.

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In a probability-proportional-to-size sample with a sampling interval of $5,000, an auditor discovered that a selected account receivable with a recorded amount of $3,000 had an audit amount of $2,700. If this were the only error discovered by the auditor, the projected error of this sample would be $300.

In probability-proportional-to-size sampling, the sampling interval is the factor used to determine the size of the sample. In this case, the sampling interval is $5,000, meaning that the size of the sample is determined by multiplying the size of the population by $5,000. The size of the population in this case is $3,000, which means that the sample size is $15,000.


The auditor then randomly selects an account receivable from the sample size of $15,000 and discovers that the recorded amount of $3,000 is different from the audit amount of $2,700. This difference of $300 is then used to calculate the projected error.

The formula for calculating the projected error is: (observed error/sampling interval) x population size. In this case, the observed error is $300 and the sampling interval is $5,000, so the formula becomes: (300/5000) x 3000 = 300. Therefore, the projected error of this sample is $300.

In conclusion, when a probability-proportional-to-size sample with a sampling interval of $5,000 is used and an auditor discovers that a selected account receivable with a recorded amount of $3,000 has an audit amount of $2,700, the projected error of this sample would be $300.

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The Federal Reserve Board specifies the maximum amount that an investor can borrow to purchase securities, and this amount is called a "margin."

A margin is the amount of money that an investor must put down as collateral to buy securities. The SEC, or Securities and Exchange Commission, is responsible for enforcing the federal securities laws, including those that regulate the securities markets and the companies that issue securities. The SEC also provides investors with information about the securities markets and the companies that issue securities.

The National Association of Securities Dealers, or NASD, is a self-regulatory organization that regulates the securities industry. The NASD is responsible for enforcing the rules and regulations that govern the securities industry, including those that relate to the conduct of broker-dealers and other securities professionals. In summary, the Federal Reserve Board specifies the maximum amount that an investor can borrow to purchase securities, which is called a margin.

The SEC enforces the federal securities laws and provides investors with information about the securities markets and the companies that issue securities. The NASD regulates the securities industry and enforces the rules and regulations that govern the conduct of broker-dealers and other securities professionals.

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Campus Candy, a retail candy shop that locates its stores primarily in small rural towns, would be best considered an example of a focused differentiation strategy.

This strategy focuses on offering unique and specialized products or services to a specific target market. Porter article: Porter's Five Forces Framework is a tool for assessing an industry's attractiveness. According to Porter's Five Forces Framework, there are five key forces that influence industry attractiveness. These five forces include supplier power, buyer power, competitive rivalry, threat of substitution, and threat of new entrants.

The objective of this framework is to aid businesses in determining their competitive advantage within an industry.A focused differentiation strategy is a strategy in which a company offers unique and specialized products or services to a specific target market. This approach allows firms to distinguish themselves from their competitors and charge a premium price for their specialized products.

Campus Candy is a retail candy shop that locates its stores primarily in small rural towns. The candy store provides a specialized and unique product that appeals to a specific target market. As a result, they are implementing a focused differentiation strategy.

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Every investment-related uncertainty that has the potential to have a negative influence on your financial well-being is referred to be a risk.

What are risk mean in regard to investments?

It is the possibility of losing the money invested if the security's fair price drops. Higher returns are offered by riskier securities. Market risk is a major component of the risk, but it is not the only one. Other risk categories include inflation risk, reinvestment risk, and credit risk, among others. For instance, market circumstances might influence the value of your investment to increase or decrease (market risk).

Market risk, credit risk, operational risk, strategic risk, liquidity risk, and event risk are just a few of the categories into which risks may be divided. One of the risk categories with the highest priority for every firm is financial risk. Financial risk is a result of market fluctuations, which may be influenced by a variety of causes.

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The immutable blockchain ledger distributed computing is a record that classifies and summarizes transactional data.

This ledger is made up of several blocks that are distributed across various nodes in a network. Each block contains a hash that is linked to the previous block, and the data is encrypted to ensure data integrity. The ledger is distributed, meaning that it is hosted on a network of computers, and it is immutable, meaning that it cannot be altered or corrupted once it is recorded. This ensures that the data stored in the ledger is accurate and secure.

The ledger stores transactional data in a way that is organized and secure. It records transactions in chronological order, and it can track changes in real time. Additionally, the ledger can be used to verify transactions and prevent fraud. By using the ledger, companies can ensure that their data is secure, accurate, and accessible.

In summary, the immutable blockchain ledger distributed computing is a record that classifies and summarizes transactional data. It is a secure, distributed ledger that stores data in an organized manner, and it is immutable, meaning that it cannot be altered or corrupted. It is used to store and verify transactions and prevent fraud, and it ensures that the data stored in the ledger is accurate and secure.

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The given options - staffing, appraising, compensation, and training and development - are types of organizational structures.

Human resource practices include staffing, appraising, compensation, and training and development. Hence, the correct option is A - organizational structures.

Staffing: Staffing is the practice of filling positions within the organization.

Appraising: Appraising is the practice of evaluating the performance of employees in the organization.

Compensation: Compensation is the practice of providing salaries, benefits, and incentives to employees for their services.

Training and development: Training and development are the practices of educating and developing employees to improve their performance, knowledge, and skills.

Hence, these four practices are fundamental aspects of Human Resource practices.

Human resource management (HRM) is the management of human resources. It is designed to maximize employee performance in service to an employer's strategic objectives.

The overall function of Human Resources is to ensure that an organization's human capital is effectively used and developed. Human Resource practices cover all aspects of the employer-employee relationship including recruiting, hiring, training, development, compensation, benefits, and workplace policies.

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Factors that drive a company's outlays for new capital and working capital include growth prospects, competitive pressures, technological changes, regulatory requirements, access to financing, changes in demand or supply chain disruptions, and the cost of capital.

A company's outlays for new capital and working capital are likely to be driven by several factors, including the company's growth prospects, competitive pressures, technological changes, regulatory requirements, and access to financing. The need to expand operations or upgrade technology can lead to investments in new capital, while changes in demand or supply chain disruptions can impact investments in working capital. Additionally, the availability of financing and the cost of capital can affect a company's investment decisions for both new capital and working capital.

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Harry's behavior is not consistent with the weak axiom of revealed preference (WARP)

The weak axiom of revealed preference (WARP) states that if an individual prefers bundle X to bundle Y at one set of prices, and then reverses this preference when the prices of the bundles are changed while the relative prices are kept unchanged, then it is inconsistent with the individual's preferences.

When the prices are ($4, $12), Harry chooses the bundle (9, 4) over the bundle (2, 9) since he has a preference for bundle (9, 4). At the same time, he chooses the bundle (2, 9) over (9, 4) when the prices are ($8, $4). This contradicts his previous preference and violates the weak axiom of revealed preference (WARP). Therefore, Harry's behavior is not consistent with the weak axiom of revealed preference (WARP).

Hence, the given information reveals that his preference for the two bundles violates the weak axiom of revealed preference.

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if the company closes its underapplied overhead entirely to cost of goods sold it will cause net operating income to be higher than the net operating income reported if the company had closed its underapplied overhead proportionally to work in process, finished goods, and cost of goods sold.

When a company closes its underapplied overhead entirely to cost of goods sold, it reduces the cost of goods sold and thus increases the net operating income as compared to when the overhead was closed proportionally to work in process, FINISHED GOODS INVENTORIES, and cost of goods sold.

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