four ways in which the government can ensure that Road Accident Fund benefits are given to deserving beneficiaries

Answer:

A. Nonprogrammed; reflective; programmed; reactive

Explanation:

Decisions that are programmed tend to happen more often and are executed swiftly, nearly automatically, without requiring extensive contemplation, thanks to what we refer to as the reactive system.

On the other hand, nonprogrammed decisions arise in unique or unfamiliar circumstances and necessitate more profound contemplation and comprehension of the matter at hand. These decisions are analyzed using the reflective system of the brain.

Thus, the accurate response is A. Nonprogrammed; reflective; programmed; reactive

Answer:

The question is rephrased to include the options:

A. The production order quantity model applies under conditions where the basic EOQ model's assumptions hold true, except that receiving is not instantaneous.

B. Average inventory exceeds half the quantity of production order.

C. Due to the non-instantaneous receipt, some items are used immediately rather than being stored.

D. All other things being equal, a lower demand rate to production rate ratio results in a smaller production order quantity.

E. All options are true.

The right answer is option B, "Average inventory is more than one-half of the production order quantity."

Explanation:

Having inventory allows for a division within the production stages, separating finished products from those that are not yet completed, potentially generating income for the company.

An average inventory will be less than half of the production order quantity.

The production order quantity model allows for gradual receipt of orders rather than a single bulk delivery.

This model aids companies in managing their inventory holding costs and average fixed ordering expenses, ultimately helping them to check and reduce inventory costs and providing clarity on appropriate production quantities at any time.

Answer:

A) The equation for net benefits is given by 20 + 24Q - 4Q²

B) 40; 40

C) MNB(Q) = 24 - 8Q

D) 16; -16

E) Q = 3

F) 0

Explanation:

a) This outlines the formula for net benefits.

Essentially, net benefits arise when total benefits surpass total costs from Q units of the control variable.

From this definition, we derive the equation

N(Q)= B(Q) - C(Q)

Where

N(Q)= Net benefits from Q units of control variable

B(Q)= Total benefits from Q control variable units

C(Q)= Total cost from Q units of the control variable

We are informed that B(Q)= 100 + 36Q - and C(Q) = 80 +12Q

This implies:

N(Q)= 100 + 36Q - 4Q² - (80 + 12Q)

= 100 + 36Q - 4Q² - 80 - 12Q

= 20 + 24Q - 4Q²

b) To find the net benefits when Q = 1 and Q=5

Step 1) For Q=1, we apply the 20 + 24Q - 4Q² formula

= 20 + 24(1) - 4(1²)

= 20 + 24 - 4

= 40

Step 2) For Q=5, we use the 20 + 24Q - 4Q² formula

= 20 + 24(5) - 4(5²)

= 40

c) To determine the marginal net benefits equation

Marginal net benefits reflect the change in net benefits caused by a change of one unit in the control variable

The formula is formulated as follows:

MNB(Q) = MB (Q) - MC(Q)

Where

MNB(Q)= The marginal net benefits at the Q level of the control variable

MB(Q)= marginal benefits

MC(Q)=Marginal Costs

We are already informed: MB(Q) = 36 – 8Q and MC(Q) = 12.

This indicates

MNB(Q)=MB (Q)-MC(Q)

= 36-8Q-12

= 36-12-8Q

= 24-8Q

Thus, MNB(Q) = 24-8Q

d) To find marginal net benefits

Step 1) When Q=1 we apply the marginal net benefit formula MNB(Q)= 24-8Q

=MNB(Q)= 24-8(1)

= 16

Step 2) For Q=5 we utilize the marginal net benefit MNB(Q)= 24-8Q

=MNB(Q)= 24-8(5)

=24-40

=-16

e) To calculate maximum net benefits, which occur when marginal costs equal marginal benefits (indicating the control variable level).

MB(Q)=MC(C)

MB(Q)= Marginal benefits

MC(Q)= Marginal Costs

We know that MB(Q) =36-8Q and MC(Q)=12

Therefore, setting maximum benefit

= MB(Q)= MC(Q)

=36-8Q=12

8Q=36-12

8Q= 24

So, Q= 3.

This indicates that at Q equal to 3, net benefits achieve maximum levels

f) To compute marginal net benefits - the difference between marginal costs and benefits

MNB(Q)=MB(Q)-MC(Q)

MNB(Q)= Marginal net benefits

MB(Q)= Marginal benefits

MC(Q)= Marginal Costs

We are aware that MB(Q) =36-8Q and MC(Q)=12

MNB(Q)= 36-8Q-12

=36-12-8Q

=24-8Q

As established, maximum levels of net benefits occur at Q = 3, substituting Q with 3 in the equation

MNB(Q)= =24-8(3)

= 24-24

=0

This indicates that at Q = 3, net costs balance out with net benefits, maximizing net benefits.

Answer:

$6,900

Explanation:

Using the incremental cost allocation technique, activities need to be prioritized regarding how costs will be assigned. Here, department 2 is identified as the main user, thus rental expenses should first be allocated to them at a rate of $25/hour.

Following this, department 1 uses the machine next, so 100 hours will be charged at the same rate as department 2, while an additional 200 hours will be billed at the reduced rate of $22/hour. The total rental charges for department 1 = (100 x $25) + (200 x $22) = $2,500 + $4,400 = $6,900