Answer:
The correct answers are b. As batch size grows, lead time shrinks and d. The Product Owner influences batch size, while the Development Team determines utilization.
Explanation:
Generally, when the batch size increases, lead time also rises, as smaller batches can be processed quicker compared to larger ones, which take extra time. Additionally, the product owner influences the batch size based on market demand, and the development team conducts utilization tests to inform their decisions that affect how resources are utilized.
Response:
Option A
Clarification:
Complete Query
A university surveys its students, finding that a 10 percent increase in tuition would result in a 12 percent drop in enrollment. If the aim is to boost overall revenue, the university should ________ tuition because the demand for education here is ________.
A) not increase; elastic B) increase; inelastic C) not increase; inelastic D) increase; elastic
Solution -
The demand for college education is elastic, meaning changes in tuition significantly influence demand. Raising tuition leads to a drop in enrollment, indicating that demand is not stable based solely on quality. Hence, the demand will not rise with a tuition increase, showing elasticity in demand.
Instructions are provided below. It is necessary to provide the following details: The machine cost $120,000, and it has an estimated lifespan of four years or 920,000 cuttings, after which it could be sold for $5,000. Each depreciation method employs a different formula. For straight-line depreciation, the annual expense remains constant, while in double-declining balance, the annual depreciation expense reduces over time. Conversely, the units of production method varies the expense based on usage. A) Straight-line: Annual depreciation = (original cost - salvage value) / estimated lifespan (in years) = (120,000 - 5,000)/4 = $28,750 yearly. B) Double declining balance: Annual depreciation = 2 * [(book value) / estimated lifespan (years)]: Year 1 = 2*(115,000/4) = 57,500; Year 2 = 2*[(115,000 - 57,500)/4] = 28,750; Year 3 = 2*[(57,500 - 28,750)/4] = 14,375; Year 4 = 2*[(28,750 - 14,375)/4] = 7,187.5. C) Units of production: Annual depreciation = [(original cost - salvage value)/ total production capacity in units] * units produced: Year 1 = [(115,000)/920,000]*200,000 = $25,000; Year 2 = (0.125)*350,000 = 43,750; Year 3 = 0.125*260,000 = $32,500; Year 4 = 0.125*110,000 = $13,750.
Response:
$18,000
Clarification:
As per the Internal Revenue Service, the rental property's lifespan is 27.50 years.
Below is the calculation for the highest depreciation amount allowed:
= (Cost of building - value assigned to land - salvage value) ÷ lifespan
= ($600,000 - $104,950 - $0) ÷ 27.50 years
= $495,050 ÷ 27.50 years
= $18,000
