In this figure, obtaining more books by giving up some movies is called a(n) trade-off; whereas losing two books in order to gain 1 movie is referred to as production cost.
The capital-structure irrelevance statement, which was developed by the economists Modigliani and Miller in the 1950s after they investigated capital structure theory, is the foundation of the static trade-off theory.
According to this thesis, in ideal markets, a company's capital structure is irrelevant because its earning potential and the risk associated with its underlying assets define its market value.
Value, in the opinion of Modigliani and Miller, is unaffected by the type of finance used and the investments made by a company. The risk to a corporation grows as debt increases, somewhat offsetting the decline in WACC. As a result, the static trade-off hypothesis identifies a debt and equity combination where the declining WACC balances the rising.
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Which of the following is not a risk normally associated with Bottom of the Pyramid strategies?
A. A low-end version of a brand may detract from the overall brand attractiveness.
B. The new low-cost products they develop may cannibalize the sales of their core products.
C. Entrenched competitors can impact the ability of the new firm to enter the market successfully.
D. New products may be perceived as exploiting the privileged customer with substandard products.
New products may be perceived as exploiting the privileged customer with substandard products is not a risk normally associated with Bottom of the Pyramid strategies.
Hence, Option D is correct
BOP, when used in a broader sense, refers to a market-based approach to economic growth that aims to simultaneously reduce the world's widespread poverty while generating growth and financial success for multinational corporations (MNCs). Topics that are related to poverty include income market economies and wealth distribution.
Companies that employ effective marketing tactics can access fortunes at the base of the pyramid while also making a positive impact on this sizable population's quality of life. Bottom-of-the-pyramid marketing focuses on offering the low-income market quality and value for their money. Businesses can look for opportunities in BoP markets to further their corporate social responsibility (CSR) goals and/or to benefit from factors like increased profits, using BoP markets to test goods and services created using new technologies, etc.
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If the cost of housing increases by 10 percent, then, other things the same, the CPI is likely to increase by about a. 4.1 percent. b. 3.3 percent. c. 10 percent. d. 1.7 percent.
The CPI is forecast to rise by around 4.1 percent if the cost of housing rises by 10% while keeping all other factors constant.
How does CPI work?
The Consumer Price Index (CPI) is a gauge of how prices for a market basket of consumer goods and services have changed on average over time for urban consumers.
What takes place when the CPI is less than 1?
The Cost Performance Index is a statistic used to assess whether projects' tasks consume more or less of their allotted money. CPI readings above 1.00 indicate under-budgeting, while readings below 1.00 indicate over-budgeting.
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You have entered the annual Turkey Dash 5K race. Halfway through, your muscles are burning and you felt as if your legs were going to give out. What happens in your body to help you get to the finish line
Answer: motivation
Explanation: mentality
Which of the following statements about the World Trade Organization (WTO) is most accurate? a. The WTO acts as an agent in trade negotiations between its members and the remainder of the world. b. The WTO attempts to mitigate trade wars between countries. c. The WTO was formed by the United Nations. d. The WTO uses legal scholars who can only issue nonbinding recommendations. e. The 39 member countries of the WTO account for about 25 percent of world trade.
The WTO attempts to mitigate trade wars between countries about the World Trade Organization (WTO) is most accurate.
What does Trade wars?
Trade wars refer to conflicts between two or more countries over trade policies, such as tariffs and other restrictions on imports and exports. These conflicts can lead to retaliatory measures from other countries and can have a significant economic impact.Trade wars are often a result of protectionism, when a country attempts to protect its domestic industries from foreign competition. The most famous example of a trade war was the 1930 Smoot-Hawley Tariff Act, which raised tariffs on a range of imported goods and provoked a wave of retaliatory tariffs from other countries.
What is World Trade Organization?
The World Trade Organization (WTO) refers to intergovernmental organization that governs global commerce. The World Trade Organization establishes trade rules and resolves disputes between nations. Its primary function is to ensure that trade flows as freely, predictably, and smoothly as possible. The World Trade Organization (WTO) serves as a forum for governments to negotiate trade agreements as well as a system for resolving disputes. It is the only international organization that deals with global trade rules.
Therefore the option B. The WTO attempts to mitigate trade wars between countries.
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John considers In-n-out burgers and McDonald burgers to be perfect substitutes. When John maximizes his utility, what will the optimal bundle of In-n-out and McDonald probably look like
If In-n-Out and McDonald's burgers are ideal equivalents, John will be able to swap one for the other at a rate of one for one.
In this scenario, the indifference curve for John for perfect substitutes is a straight line, with the slope indicating the rate at which McDonald burgers can be substituted for the in - n - out burger. It is depicted in the figure by placing a McDonald's burger on the x axis and in-n-burgers on the y axis. If the price of a McDonald's burger reduces, John would prefer to buy one more unit of McDonald's burger by foregoing one In-n-buger.
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What is the mortgage on a 200k house?
A 5% down payment is typically needed for conventional mortgages, such the regular 30-year fixed rate mortgage. In this scenario, $10,000 is required to obtain a mortgage if you are purchasing a $200,000 home.
What do you mean by mortgage?
A mortgage is an agreement between you and a lender that permits you to borrow money to buy or refinance a home and gives the lender the power to seize you.With a mortgage, your lender lends you a predetermined sum of money to purchase the property. You consent to repay your loan over a number of years, plus interest. Until the mortgage is entirely repaid, the lender retains ownership of the house for various assets, resources and useful properties.This is how the theory of mortgage can be used to visualize and understand various concepts..To know more about mortgage here
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The _____________was created by Congress to allocate acreage among individual farmers, encouraging them to take land out of production by paying them subsidies.
The Agricultural Adjustment Act (1933) was created by Congress to allocate acreage among individual farmers, encouraging them to take land out of production by paying them subsidies.
What was the function of the Agricultural Adjustment Act of 1933?A federal law, the Agricultural Adjustment Act (AAA), was passed by U.S. President Franklin D. Roosevelt in 1933 as a part of his New Deal. The law offered incentives to farmers in exchange for reducing the amount of some crops they produced. The purpose of the subsidies was to reduce overproduction in order to raise the price of agricultural products. AAA successfully achieved its goals during its short existence. Crop stocks fell and prices rose. It is now considered the most successful New Deal initiative.
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Examples of key elements of the global segment of the general environment include which of the following
Examples of key elements of the global segment of the general environment include economic factors, Political and legal factors, Demographic factors, Natural and physical factors, Cultural factors, and Geographical factors.
- Economic factors such as exchange rates, inflation rates, and growth patterns of the global economy.
- Political and legal factors such as government regulations, trade agreements, and political stability.
- Technological factors such as advances in technology and the prevalence of the internet and social media.
- Demographic factors such as population growth, aging, and migration patterns.
- Natural and physical factors such as climate change, natural disasters, and access to natural resources.
- Cultural factors such as language, customs, and beliefs.
- Geographic factors such as regional economic integration and access to different markets.
It's worth noting that the global environment can have a significant impact on a business, and companies need to be aware of and adapt to changes in this segment of the general environment in order to be successful. Understanding these key elements can help a company to identify potential opportunities and threats and make strategic decisions accordingly.
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How many standard deviations is the upper control limit, UCL, above the long-run center line, X-bar-bar: A.1
B.2
C.3
D.6
E.12
The standard deviation is the upper control limit, UCL, above the long-run center line, X-bar-bar is 3. Option C is correct.
UCL (Upper Control Limit) FOR A XBAR CHART:
Typically, control limits are set at a distance of +/-3 standard deviations from the meridian. The Process is deemed to be in control when the Subgroup Values are between the Upper and Lower Control Limits, thus +3. So Upper control limit formula will be:
UCL (Upper Control Limit) = MEAN + 3 * (STDEV / SQRT(NO. OF SAMPLES))
Upper Control Limit (UCL) is a term that refers to a value that is larger than the maximum value of a chemical or physical parameter that can be attributed to natural fluctuations and sampling and that the Administrator and the operator have agreed upon prior to starting mining.
The term "standard deviation is a measurement of the data's dispersion from the mean.
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Which of the following major laws fall under the Social Regulation pertaining to Environmental Protection?
Environmental Response, Compensation, and Liability Act of 1980, Air Quality Act of 1967, Hazardous Substance Act of 1964, and Water Pollution Control Act
Clean Air Act of 1963, Resource Conservation and Recovery Act of 1976, Endangered Species Preservation Act of 1966, and Safe Drinking Water Act of 1974
Hazardous Substance Act of 1964, Endangered Species Preservation Act of 1966, Environmental Response, Compensation, and Liability Act of 1980, and Public Health Smoking Act of 1970
Endangered Species Preservation Act of 1966, Cigarette Labeling and Advertising Act of 1966, Clean Air Act of 1963, and Refuse Act of 1899
The Clean Air Act of 1963, the Resource Conservation and Recovery Act of 1976, the Endangered Species Preservation Act of 1966, and the Safe Drinking Water Act of 1974 are major environmental laws.
What exactly is the Clean Air Act of 1963?
The Clean Air Act of 1963 was an improvement over the Air Pollution Control Act of 1955 in that it "set limits on emissions from factories," whereas factories had previously been largely unregulated.
The Clean Air Act is the primary federal air quality law in the United States, with the goal of reducing and controlling air pollution throughout the country.
It was first enacted in 1963 and has been amended several times since then. It is one of the first and most influential modern environmental laws in the United States.
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Your company, ABC Real Estate has a listing on a property at 1234 Any Old Street. The property was listed for $295,000, and the seller agreed to pay your designated broker a 7% commission when the property is sold. A licensee with XYZ Real Estate Company presents an offer for $275,000 that is accepted by the seller. Your designated broker has agreed to share the 7% commission with a cooperating broker equally. The cooperating broker has agreed to pay the licensee who sold the property 45% of the total earned. How much did the licensee who sold the property earn?
The licensee would earn 45% * $10,325 = $4,646.25
A real estate commission, often known as a property agent, is a certified professional who assists the purchase or rental of real estate options, such as land, homes, commercial buildings, etc. They are paid a commission on each successful transaction, have exceptional competence in their respective sectors, can provide the most clear solutions while taking into account the demands of their individual consumers.
The chosen broker was given a 7% fee by the seller on the sale of the property, which was advertised for $295,000.
the commission would be, thus 7% * $295,000 = $20,650.
Each broker would get a commission as a result of the designated broker's agreement to split it evenly with the collaborating broker. $20,650 / 2 = $10,325.
The partnering broker stipulated that 45% of the overall earnings would go to the licensee who sold the property. Thus, the licensee would profit 45% * $10,325 = $4,646.25
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Communication broke down on multiple levels, and employees failed to question authority. The employee behavior could be attributed to the higher endorsement of ________ in Japan.
The employee behavior could be attributed to the higher endorsement of legality in Japan.
Communication is known to be a process by which information is exchanged between multiple individuals through a common system of symbols, signs, or behavior. In our daily life, communication helps us build relationships by allowing us to share our experiences and needs, and helps us connect to others. It's the essence of life, allowing us to express feelings, pass on the information and share thoughts.
Most people think about speech when they think about communication but there are many other ways we can also use to communicate with each other.
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A firm that wishes to minimize risk when investing idle cash would be least likely to buy
Select one:
a. stocks in other corporations.
b. certificates of deposit.
c. federal agency securities.
d. Treasury bills of the U.S. government.
A company that wants to minimise risk while investing idle cash is unlikely to acquire long-term corporate bonds. As a result, choice A is the right response
Compared to their short- or medium-term competitors, long-term corporate bonds often provide better returns. However, long-term corporate bonds are significantly more susceptible to fluctuations in interest rates and will probably exhibit high volatility as US interest rates climb.
There are a number of enticing high-yielding exchange-traded funds (ETFs) available for investors looking to diversify their portfolios with long-term corporate bonds. Investors have access to a wide range of exchange-traded funds (ETFs) to increase their exposure to long-term corporate bonds.
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The United Nations reported a list of the three happiest countries in the world. Which are Switzerland,_ Iceland, and Denmark.
Switzerland is the the three happiest countries in the world. According to the World Happiness Report from 2022, Finland was named the world's happiest nation.
On a scale of 0 to 10, the Nordic nation received a 7.82. Denmark and Iceland, two further Nordic nations, came in second and third, respectively. In 2022, Finland is ranked first in the world for happiness. Denmark and Iceland came in second and third, respectively. Switzerland, the Netherlands, Luxembourg, Sweden, Norway, Israel, New Zealand, and the top 10 "happiest" nations in the world were all included in this list. The happiest nation is Finland, and one of the ten countries with the biggest dip is world's.
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Assume the following data for 120,000 units of a product that Spectacular Company expects to produce and sell during the current year: Manufacturing costs: Direct materials $1,200,000 Direct labor 3,000,000 Factory overhead: Variable costs $360,000 Fixed costs 150,000 510,000 Total manufacturing costs $4,710,000 Selling and administrative expenses: Variable expenses $360,000 Fixed costs 600,000 Total selling and administrative expenses 960,000 Total cost $5,670,000 Desired rate of return 23% Total assets $1,600,000 What will the normal selling price per unit be if calculated using the product cost concept
$50.32 will the normal selling price per unit be if calculated using the product cost concept.
The expenses incurred to produce a product are referred to as its cost. Direct labor, raw expenses, consumables competitively priced, and factory overhead are all included in these prices.
The cost of the labor necessary to provide a service to a customer can also be considered when determining product cost. Product costs are the expenses made to create a good that will be sold to a customer. Cost of the goods includes: Direct materials are purchased raw materials that are used right away in the manufacturing process.
For instance, a car manufacturer's direct material cost might be the metal used to construct the vehicle. Direct materials, direct labor, and overhead are the three main types of expenditures that are accounted for during the manufacturing process.
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A project manager and the project team are actively monitoring the pressure gauge on a piece of equipment. Rob, the engineer, recommends a series of steps to be implemented should the pressure rise above 75%. The 75% mark represents what?
The 75% mark represents the threshold when the engineer, recommends a series of steps to be implemented should the pressure rise above 75%.
When you enter a room, you must cross a threshold. A threshold separates one space from another, and you are also on a threshold just before beginning anything new. A threshold is a starting or stopping point. There are additional valid explanations for why a security could be included on a threshold list. While some of these errors may be the result of improper short selling, other possible causes include technological issues, mistakes made by humans, or real delays in the market makers' time-consuming efforts to acquire securities for delivery. It is not necessary to immediately consider the securities on the threshold list to be suspect. In accordance with SEC standards, a number of exchanges provide threshold lists.
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The intent of the offeror to extend a serious offer to the offeree is typically determined by reference to O A.The beliefs of the offeror. O B. The intentions of the offeror. O C. The assumptions of the offeror. O D. The words and conduct of the offeror.
The intent of the offeror to extend a serious offer to the offeree is typically determined by reference to D. The words and conduct of the offeror.
The words and actions of the offeror are often used to establish whether or not the offeror intends to make a firm offer to the offeree. Both the offering and the confirmation must be made in a straightforward manner.
The offeror should intend to submit the offer in order for it to be valid. From the perspective of the offeree, it is determined whether there is an intention to make an offer. It is an offer if the words or deeds of the offeror would convince a rational person in the offeree's situation that it is an offer.
A manifestation of acquiescence to the conditions [of the offer] given by the offeree in a way that is invited or demanded by the offer is referred to as an acceptance. Identifying whether an offeree accepts a proposal.
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promises to sell his recreational vehicle (RV) to Chandler, who builds a structure behind his house in which to keep it.
Sid is accused of negatively relying on Chandler's promise that he will sell his recreational vehicle (RV) because the pledge was ineffective.
What are houses behind houses called?In California, depending on regional use, accessory dwelling units (ADUs) may alternatively be referred to as granny flats, guest homes, mother-in-law apartments, in-law suites, casitas, etc. An architect creates the building's blueprint or design, designs the structure, and supervises construction. In essence, they design the building's framework.A home's skeleton provides it with stability, shape, and a framework for its exterior coverings. We refer to this construction as the frame. The majority of houses constructed since the 1920s are formed of timber beams, floor joists, wall studs, roof rafters, and associated materials, however some new homes have steel frame.Foundation. The outer, perimeter wall of the majority of houses is supported by cinder blocks. Mortar keeps them connected and enables them to sit securely and remain put for a long period.To learn more about Chandler refer to :
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Which of the following should you NOT do when attempting to improve communication?
Multiple Choice
a. Occasionally nod in agreement.
b. Close your eyes.
c. Speak in a quiet, reassuring tone.
d. Smile and show animation.
e. Lean toward the speaker.
B. Close your eyes
Use the process flow diagram to determine which of these events has the greatest net benefit Station A 1 worker 8 minutes Station B 1 worker 7 units/hr Station C 1 worker 6 units/hr Station D 1 worker 9 minutes. O A. reducing the flow time at Station D from 9 to 8 minutes O B. increasing the capacity at Station B to 8 units per hour O C. increasing the capacity at Station C to 7 units per hour O D. reducing the flow time at Station A from 8 to 7 minutes
The correct answer to the given question about process flow diagram has the greatest net benefit Station A is option C) increasing the capacity at Station C to 7 units per hour.
A process flow diagram (PFD) is a sort of flowchart that shows how important parts of an industrial facility relate to one another. It is used to model new processes, enhance existing ones, and document existing ones. It may also be known as a Process Flow Chart, depending on its purpose and content. They use a variety of symbols and notations to represent a process. Equipment numbers and brief (a few words) descriptions are frequently included on PFDs, along with material and energy balances, equipment sizes (often rough or preliminary), building materials, flow direction arrows on pipelines, and simplified key process control loops. A project's net benefit is calculated by adding up all of its advantages and deducting all of its expenditures. Unlike the relative metrics supplied by the B/C ratio, this output provides an absolute amount of benefits (total dollars). Projects with comparable B/C ratios can be ranked using net benefit.
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Suppose Torche Corporation has the following revenue and expenses for 2020: Revenues of $9,100,000 Cost of Goods Sold of $2,730,000 Depreciation Expenses of $500,000 Income Taxes of $1,672,000 Interest Expenses of $180,000 Other Expenses of $600,000 Sales, General, & Administrative Expenses of $910,000 Create an income statement with amounts in thousands What is the value of Gross Income? Note: Revenue and expense amounts are provided in dollars but the income statement units are thousands of dollars_ Please specify your answer in the same units as the income statement (i.e-, enter the number from your completed income statement)
The value of Gross Income is $6,370,000 which is calculated by subtracting the cost of goods sold from the revenue.
How do you prepare the income statement?The Income statement would be:
Revenues: $9,100,000
Cost of Goods Sold: $2,730,000
Gross Income: $6,370,000
Depreciation Expenses: $500,000
Sales, General, & Administrative Expenses: $910,000
Other Expenses: $600,000
Operating Income: $4,360,000
Interest Expenses: $180,000
Income before Taxes: $4,180,000
Income Taxes: $1,672,000
Net Income: $2,508,000
The value of Gross Income is $6,370,000 which is calculated by subtracting the cost of goods sold from the revenue.
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What is the most common economic system and why?
The most common economic system is Mixed Economy.
Why mixed economy is so common?
An economic system known as a mixed economy incorporates elements of both capitalism and socialism. A mixed economic system provides for some economic freedom in the use of capital and the protection of private property, but it also permits government intervention in the economy to further social objectives. All contemporary economies are dual economies—mixed economies in which the public and private sectors share production resources. A mixed economy is a framework in which production is controlled to some extent by the government and owned by both public and private enterprises.The mixed system, which includes elements of the other economic system types, is the type of economic system that dominates the world's greatest economies (Amadeo, 2020)To know more about Mixed economy here
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t/f
How much people trust you is less important than the overall number of fans and followers you have
How much people trust you is less important than the overall number of fans and followers you have,
The statement is False.
I believe that trust can be defined in terms of the following elements: consistency, compassion, communication, and competency after reviewing a wealth of literature on the subject.Trust is described in the dictionary as "feeling safe when one is weak." When we rely on a boss, relative, or friend, we might feel exposed, and we need trust to control our anxiety when this happens. Things run smoothly when there is trust present; however, the relationship is put at risk when trust is lost.
Consider a specific connection you have with someone at work as you read the descriptions.
Level 1: Rules-Based Trust and Governance.Level 2: Knowledge and Trust Based on Confidence.Trust at Level 3 is established and based on vulnerability.To know more about trust here
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Which of the following phrases is not descriptive of the corporate form of business?
1) Professional management. 2) Double taxation on distributed earnings. 3) Unlimited liability. 4) Continuous existence.
The correct answer to the given question about phrase which is not descriptive of the corporate form of business is option 3) Unlimited liability.
When a business owner or partner has unlimited liability, they are fully responsible for all of the company's debts. In contrast to the common limited liability corporate structure, this responsibility is not limited and obligations may be satisfied through the seizure and sale of the owners' personal assets. General partners and sole proprietors who form an unlimited liability company have equal liability for all debt and obligations incurred by the company. Most businesses choose to set up limited partnerships, where each partner's responsibility is limited to the amount they invested in the business. A benefit of creating an overseas unlimited liability subsidiary for many businesses is nondisclosure.
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Employment assessments are only used during the hiring phase of employment. Please select the best answer from the choices provided (T/F)
This statement is False. Employment assessment can be used at different stages of employment. It can be used to identify the strengths and weaknesses of the workforce and can provide useful information about employee behavior.
Employment assessment is useful for employers because it provides an objective way of evaluating job applicants. Assessments measure job-related skills, abilities and knowledge and provide feedback on how a candidate might perform on the job. This type of assessment is useful in identifying who is best suited for a role and can help employers make informed hiring decisions. In addition, assessments can be used to provide feedback to candidates about their performance in the recruitment process, helping them better prepare for future interviews or job opportunities.
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What are the 4 purposes of advertising?
Advertising's main goals are to educate consumers about a company's goods, persuade them that they are the best, and improve the company's reputation.
What are the 4 types of Advertising?Advertisements on display, in video, on mobile devices, and in native languages. Information, persuasion, and remembrance are the three major goals of advertising. Therefore, be sure that it serves these three objectives anytime you are developing an advertisement for your brand. Therefore, the following five advertising guiding concepts can be summed up: Identify the target audience's relevance. Display differentiation from the opposition. By using a product feature or usage, establish credibility. increase consumer knowledge.
Use the appropriate touch points to execute. A 21st-century marketing mix can instead consist of the 4Ms : merchandise, market, media, and message. Customer, cost, convenience, and communication make up the marketing "4 C's." These four criteria decide whether a business will eventually prosper or fail. Any marketing plan revolves around the consumer.
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There are many benefits of studying business. Please select the choices below that represent benefits of studying business. a. Ability to evaluate different career choices. b. Potential success in a career in business. c. Increase ability of making better purchasing decisions by evaluating marketing claims.
Answer: The correct answer is C.
Explanation: Choosing a business degree will give you a good understanding of basic economic principles, how markets are affected by world events, and how to assess a firms' financial health. Combined, this can help you make better-informed investment decisions and ultimately, how to achieve a higher ROI.
The methods used to assess the risks of a specific activity, and to develop a program to reduce losses from exposure to those risks is called ___________________________.
Risk management is the process of identifying the hazards associated with a certain activity and creating a plan to minimize losses caused by exposure to those risks.
Which device is employed for risk management?The risk assessment is a tactical instrument for project risk management. It is effective to collect information on the risks the team anticipates and then determine how to handle pro actively if they do occur throughout the project.
How do risk control measures work?Risk management measures are steps made to get rid of, stop, or lessen the likelihood of an identified danger happening. In as far as it is practically possible, you want to decrease the dangers to your health and safety by using risk control procedures.
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Within the realm of Information Warfare, we spoke of four domains. Which domain was considered the fourth domain? This domain was considered to be the least understood and as affecting the other three
The fourth domain within the realm of Information Warfare is often considered to be the "cognitive" domain. This domain is considered the least understood and is thought to affect the other three domains: physical, cyber, and psychological.
The cognitive domain refers to the way people process, understand and make decisions about information. It's about how people perceive and interpret information, and how that perception can be influenced by factors such as emotions, biases, and cultural background.
The cognitive domain is complex, and it's considered the least understood because it's difficult to predict how people will interpret and respond to information. Additionally, it's challenging to influence people's perceptions, emotions, and decision-making through information.
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The Quaker Foods division of PepsiCo is most likely treated as a(n)
A. revenue center.
B. cost center.
C. investment center.
D. profit center.
Most likely, PepsiCo treats its Quaker Foods division as an investment center .
What exactly is an investment center ?An investment center is an organizational unit whose profitability in relation to the unit's own investment base is accountable to top management. In the same way that profit centers measure revenues and expenses, assets used are also measured. As a result, the concept of a profit center can be extended to an investment center: Profit is measured for both, but this profit is only linked to the size of the investment base in an investment center.
Therefore, deciding to designate a division as one of these types of centers entails choosing between two methods of assessing the division's contribution to the business. We are particularly interested in the investment center as a strategy for increasing company returns because of the ratio of profit to capital invested in a division. This method probably provides a more accurate picture of a division's contribution to the economic well-being of the company than the profit center method does because it takes into account more factors.
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