Answer: Prior authorization quantity limit and step therapy are some examples of the coverage rules
Explanation:
The statement 'prior authorization, quantity limit, and step therapy are some examples of the coverage rules" is true. Drug utilization management (DUR) is a set of methods used to ensure the appropriate use of medications.
These methods can include prior authorization, quantity limits, and step therapy.
Prior authorization is a process where a health plan requires the prescriber to obtain approval from the plan before a medication can be dispensed. This is typically used for high-cost or high-risk medications.
Quantity limits are restrictions on the amount of medication that a patient can receive in a given period of time. This is typically used to prevent patients from stockpiling medications or using them for purposes other than what they are intended for.
Step therapy is a process where a patient must try one or more less expensive or less invasive treatments before they can be prescribed a more expensive or more invasive treatment. This is typically used to ensure that patients are only using the most appropriate treatment for their condition.
The UN does not have specific rules on DUR, but many countries have their own regulations. These regulations are designed to ensure that patients have access to safe and effective medications, while also preventing the misuse of medications.
Therefore, the given statement is true.
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Your question is incomplete, most probably the complete question is :
The statement is about the drug utilization management UN rules. true or false?
prior authorization quantity limit and step therapy are some examples of the coverage rules
Access the March 23, 2017, filing of the 10-K report of Home Depot for the year ended January 29, 2017, from SEC.gov (ticker: HD). Refer to Home Depot's balance sheet, including its note 4 (on debt).
1. Identify Home Depot's long-term liabilities and the amounts for those liabilities from Home Depot's balance sheet at January 29, 2017.
2. Review Home Depot's note 4. The note reports that as of January 29, 2017, it had $2.947 billion of "5.875% Senior Notes; due December 16, 2036; interest payable semiannually on June 16 and December 16." These notes have a face value of $3.0 billion and were originally issued at $2.958 billion.
a. Why would Home Depot issue $3.0 billion of its notes for only $2.958 billion?
b. How much cash interest must Home Depot pay each June 16 and December 16 on these notes?
Because interest notes of comparable notes with comparable risk and must have a higher interest rate than 5.875%, Home Depot issued $3 billion of its notes for just $2,958 billion.
The required details for interest rate in given paragraph
The interest rate is the amount of interest payable over a period of time in relation to the amount borrowed, deposited or borrowed (referred to as principal). The total interest on the amount borrowed or borrowed depends on the principal amount, the interest rate, how often it is lent, deposited or borrowed. The effective total interest rate is the interest rate over a period of one year. Other interest rates apply for other periods, e.g. a month or a day, but are usually annual.
The interest rate has been called the "preference indicator" for a dollar of current [income] instead of a dollar of future income.” The borrower wants or needs money ASAP and is willing to pay a fee – the interest rate – for the privilege.
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burger king, a hamburger fast-food restaurant, incurs the following costs:
Customer Service
Design
Distribution
Marketing
Production
Research and Development
Cost Item: Value Chain Business Function:
1.Cost of oil for the deep fryer.
2.Wages of the counter help who give customers the food they order.
3.Cost of the costume for the King on the Burger King television commercials.
4.Cost of children's toys given away free with kids' meals.
5.Cost of the posters indicating the special "two cheeseburgers for $2."
6.Costs of frozen onion rings and French fries.
7.Salaries of the food specialists who create new sandwiches for the restaurant chain.
8.Cost of "to-go" bags requested by customers who could not finish their meals in the restaurant.
A value chain is a concept that describes every step of a company's operations in the development of a good or service, from the acquisition of raw materials through the final delivery to the customer.
Cost Item Value Chain Business Function
1 Production
2 Distribution
3 Marketing
4 Marketing
5 Marketing
6 Production
7 Design (or research and development)
8 Customer service
All the business processes that are involved in producing a product from beginning to end are referred to as a value chain (e.g., design, production, distribution, and so on). Businesses can identify areas where costs can be cut by using a value chain analysis, which provides them with a visual representation of these operations.
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one way to improve productivity is by , which gives employees the range of skills they need to perform different tasks.
One way to improve productivity is by "Cross-training" , which gives employees the range of skills they need to perform different tasks.
The Cross-training is the skills or training which teaches in the job that how to perform the role in order to become the good employee and performed the role as a professional.
The time management is the skill which comes in the soft skill category. Time management is the management of priority tasks according to the requirement time to complete them.
This skills help the employee to improve the productivity. To improve productivity is by time management, which gives employees the range of skills they need to perform different tasks.
The question is incomplete, the complete question is here:
One way to improve productivity is by , which gives employees the range of skills they need to perform different tasks.
a. Innovation.
b. Cross-training.
c. Management.
d. Creativity.
The correct option is B.
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what's the rate of return you would earn if you paid $950 for a perpetuity that pays $85 per year?
Return = 85/950 = 8.95% The return (RoR) is the net gain or loss on an investment over a period of time, expressed as a percentage of the original cost of the investment.
The required details for rate of return in given paragraph
When the rate of return is calculated, the percentage change between the start of the period and the end of the period. Return on Investment (RoR) can be applied to any investment vehicle, from real estate to bonds, stocks and works of art. RoR works with any asset as long as it is eventually purchased and generates cash flow at a later date. Investments are valued in part on the basis of past performance, which can be compared to assets of the same type to determine which investments are most attractive. Many investors like to choose their desired rate of return before making an investment choice. Return (RoR) is used to measure an investment's gain or loss over time. RoR can be applied to a variety of assets ranging from stocks and bonds to real estate and art.
The effects of inflation are not factored into the simple rate of return calculation, but are factored into the real rate of return calculation. The internal rate of return (IRR) takes into account the time value of money.
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Suppose that marginal product tripled while product price fell by one-half in the table below. What would be the new values in the table? What would be the net mpact on the location of the resource demend curve given below?
When a corporation adds one single labor unit while maintaining constant production variables, its overall output increases (marginal product of labor, or MPL).
Does the mean change marginally?The phrase "marginal change" is used by economists to describe minor modifications to an existing course of action. Simply put, marginal adjustments are very modest incremental adjustments that only have an overall impact on the bigger (macroeconomic) totals.
How are marginal values determined?The additional costs spent by manufacturing more units of an item or service are known as marginal costs. By dividing the overall variation in the cost of manufacturing additional items even by change in the quantity of goods produced, it is determined..
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Below is a 6 × 8 array containing the ages of moviegoers. Treat this as a population. 32 34 33 12 57 13 58 16 23 23 62 65 35 15 17 20 14 11 51 33 31 13 11 58 23 10 63 34 12 15 62 13 40 11 18 62 64 30 42 20 21 56 11 51 38 49 15 21 (a) What was the proportion of all 48 moviegoers who were under age 30? (Round your answer to 2 decimal places.)
The proportion of moviegoers under age 30 is 23/48 or approximately 0.48.
How to calculate the ratio?Ratio in Mathematics simply demonstrates how many times one number can be able to fit into another number. It should be noted that ratios contrast two numbers by dividing them. In this case, A/B will be the formula if one is comparing one variable (A) to another variable (B)
To find the proportion of moviegoers under age 30, we need to count the number of moviegoers who are under age 30 and divide that by the total number of moviegoers (48).
Out of the 48 moviegoers, there are 23 moviegoers who are under age 30. Therefore, the proportion of moviegoers under age 30 is:.
= 23/48
= 0.48.
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An investor sells 150 shares of Amazon (AMZN) stock at $35.00 and pays a $7 commission period what is the total amount of money received by the investor? Hint: The answer isn’t $5257.
a. $5243
b. $5250
c. $5520
Please answer it correctly.
How is technology used in improving the casting products?
3D printing, laser welding, and magnetic pour aids increase cast product mechanical, chemical, and dimensional qualities. This produces stronger, more lasting castings for a multitude of sectors.
What is Technology?Generally, Technology is used in various ways to improve casting products. Some examples include:
Computer-aided design (CAD) and computer-aided manufacturing (CAM) software are used to design and create digital models of casting products, which can then be used to guide the manufacturing process.
3D printing technology can be used to create prototypes of casting products, allowing for rapid iteration and testing.
Simulation software can be used to predict and analyze the performance of casting products, allowing for optimization and improvement.
Advanced imaging techniques can be used to inspect and analyze casting products, detect defects and ensure quality.
Robotics and automation can be used to improve efficiency and consistency in the casting process, as well as reduce the number of human errors.
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In order to reduce risk in a firm, the firm would seek to enter a business that has _____.
a. high positive correlation with its present business
b. zero correlation with its present business
c. high negative correlation with its present business
d. high negative variation with its present business
A company will look to enter a market that has a strong positive association with its current business in order to lower risk inside the organisation.
A firm's definitionA company, partnership, or limited liability company (LLC) that operates for profit and provides professional services is known as a firm. A single location is what most firms have. On the other hand, a company is made up of one or more physical locations that are all owned by the same person and share the same employment identification number (EIN).
The word "firm" can refer to a wide variety of businesses, including consulting, marketing, and graphic design firms, among others. When used in a title, the word "firm" is frequently associated with businesses that provide specialised legal and accounting services.
The company name is frequently used in commercial transactions, but the degree of legal protection—for owners or employees—depends on the ownership structure that was chosen when the company was formed.
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which of the following messages would be the most appropriate to send via instant message to a colleague?
"The team meeting has been confirmed for 9 a.m. this Friday." messages would be the most appropriate to send via instant message to a colleague
Instant messaging is a type of online communication that enables real-time text transfer across a computer network or the Internet (IM). A message is frequently conveyed between two or more parties when each user submits text and causes a transmission to the recipient(s), who are all connected to the same network. Immediate messaging, as opposed to email, enables real-time communication; hence, the name "instant." Most modern instant messaging applications (sometimes referred to as "social messengers," "messaging apps," or "chatting apps") use push technology and come equipped with extras like emojis (or graphical smily ), file sharing, bots, over IP , or video share capabilities.
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Comparing the benefits and costs of engaging in an activity.
Comparing the benefits and costs of engaging in an activity involves Rational decision-making.
What is the importance of cost-benefit analysis?An individual or organization can use cost-benefit analysis to analyze a choice or proposed project without prejudice. As such, it provides an unbiased and evidence-based assessment of your alternatives, which may assist your company in becoming more data-driven and rational.
Comparing the costs and advantages of that incremental adjustment is part of rational decision-making. The marginal costs are the additional expenses of engaging in a certain activity. The marginal benefits are the additional rewards of participating in that activity.
Therefore, it can be concluded that comparing the advantages and disadvantages of participating in an activity necessitates rational decision-making.
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You work for REV. Based on the documents, what does RDM most likely stand for?
A. Remote Data Management
B. Ready Digital Manager
C. Remote Data Maintenance
D. REV Digital Measure
E. Responsive Data Maintenance
Based on documents, RDM most likely stands for Remote Data Management.
What is management?Whether it's a nonprofit, for-profit company, or government agency, management is the administration of the organization. In order to fulfill its goals by utilizing its resources, including its financial, natural, technological, and human resources, management is the process of deciding on an organization's strategy and planning the activities of its staff. In order to manage a company's human resource and ensure its success, management must ascertain the purpose, objectives, procedures, and rules of the organization. This suggests good communication in the same way that a corporate setting suggests staff involvement and some form of productive advancement or system output. Management is distinct from using machinery or controlling animals in that it can take place in both legal and illegitimate circumstances.
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what is the definition of risk
risk- risk is the probability of risk which a company or a person feels when he do certain task for it's benefit. it is said that "higher the risk higher will be the benefit".
for example if you invest in something then you will get more profit if you invest more but along with it you have higher risk that you may also loose the money.
What is the link between managing ineffective performers and organizational productivity?
Ineffective performance is defined as an employee's inability to meet a specified level of performance and is usually ascribed to the working environment. The capacity of an organization to fulfill its goals while avoiding costs is referred to as organizational productivity.
What effect does organization have on productivity?According to studies, competent management may considerably enhance production, market value, and growth, as well as the capacity to resist bad events such as a recession.
Ineffective personnel have a significant negative impact on organizational productivity. To increase the performance of such personnel, certain managerial steps must be taken.
Managers should closely monitor, engage, encourage, and guide ineffective employees. Bosses should design motivational strategies and identify the root reason of an employee's incapacity to succeed. Employees are affected by a variety of circumstances, including coworkers, the environment, family disruptions, and salaries.
As a result, supervisors must recognize the issue and properly aid the employee. Criticism from superiors causes work-related stress, which leads to ineffectiveness; thus, empathic managers may resolve these differences and strengthen the working relationship.
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knowing a company business standards will?
Answer:iiiiiiiii llllll
Which product is generally LEAST influenced by geographics?
OA
OB. scuba gear
OC. video games
OD.winter coats
snow chains
An instance of geographic segmentation is an ice cream business enterprise segmenting a us of a by how warm special areas are and focused on these precise areas that are freshest and therefore greater probable to purchase ice cream.
What are geographical products?In this chapter, the time period “product geography” is used as a concept to refer to such a system of locations joined by using the commonality of an association to a specific product or category.
Demographic, psychographic, geographic, and behavioral are the four pillars of market segmentation, however think about the use of these four more types to enhance your advertising efforts.
A advertising approach created by using dividing the target market into segments on the basis of factors such as economics, meals habits, apparel habits, languages, traditions and many different features is known as geographic segmentation.
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https://brainly.com/question/12790602#SPJ1Which would be least likely to cause the production possibilities curve to shift to the right?
a. An increase in the labor force
b. Improved methods of production
c. An increase in the education and training of the labor force
d. A decrease in unemployment
The correct option is A. Just because unemployment has fallen, new and/or better resources have not been added to the economy.
The required details for Resources in given paragraph
Resources refer to all materials available in our environment that are technologically available, economically feasible, and culturally sustainable and help us to satisfy our needs and desires. Resources can be broadly classified according to their availability, broken down into renewable and non-renewable resources. They can also be classified as current and potential according to their degree of development and exploitation, as biotic and abiotic according to their origin, and as ubiquitous and localized according to their distribution. The article will become a resource over time and as technology advances. The benefits of using resources can include increasing wealth, keeping the system functioning properly, or improving well-being. From a human perspective, a natural resource is anything that is extracted from the environment to meet human needs and desires.
The resource concept was developed in in many recognized fields of work in economics, biology, and ecology. , for example information technology, management and human resources - related to the concepts of competition, sustainability, protection and management.
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If a company increases its sales price per unit for Product A the new breakeven point will O A remain the same B. decrease O c. increase OD. More information is needed
If a company increases its sales price per unit for Product A the new break-even point will decrease.
What is the break-even point?
In economics, business, and particularly cost accounting, the break-even point is the point at which total cost and total income are equal, or "even." Although opportunity costs have been paid and capital has received the risk-adjusted, projected return, there is no net loss or gain, and one has "broken even." The point at which a business breaks even is when its sales exactly match its costs. Breakeven Point in Units = Fixed Costs (Price - Variable Costs). Sales volume, business expenses, and product pricing are all interconnected. For business owners, the break-even point is crucial since it indicates the minimum level of sales needed to turn a profit.
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What does the government call goods and services provided to economically challenged individuals for free or greatly reduced prices?
O nonprofit
O welfare
Oregulation
Oin-kind benefits
What are the determinants of cultures that you want to cultivate from early of the business?
The determinants of culture that you would want to cultivate early in business are:
There are several key determinants of culture that businesses may want to cultivate from the early stages of the business:
Values: Establishing a clear set of core values is important for creating a strong organizational culture. Values such as integrity, accountability, and respect can help guide decision-making and behavior within the company.
Leadership: The leadership style and behavior of the company's leaders can have a significant impact on the culture of the organization. Strong leaders who lead by example and promote a positive, inclusive culture can help to foster a culture of excellence and teamwork.
Communication: Clear, open, and transparent communication is essential for building a positive culture. Regular communication and feedback channels can help to ensure that all employees feel heard and valued.
Employee engagement: Encouraging employee engagement and participation in the culture-building process can help to ensure that the culture is embraced by all employees.
Inclusion and diversity: Promoting an inclusive and diverse culture is vital for building a strong, productive, and innovative organization. This includes recognizing, respecting and valuing the differences in perspectives, backgrounds, and experiences of all employees.
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Conflict and conflict resolutions happens often in the workplace.
Mary Parker Follett shared with us the point of integrative
conflict resolution where both parties indicate their preference(s)
and then work together to find a solution for both. The
alternative is to dominate the other party
Please find and share an article (copy and paste Web URL into
your discussion) that outlines an example of integrative conflict
resolution where both parties indicated their preferences and
worked towards a resolution together. You must cite the
- textbook and utilize exhibit 2.6 in our textbook to support your
discussion post.
Also, please outline your feedback from the article i.e. why you
selected the article and how it resonated with you.
Your initial discussion post must be 150 words in length.
I found an article titled "Integrative Conflict Resolution: A Case Study" by Robert I. Field, which provides an in-depth example of how integrative conflict resolution was used to resolve a dispute between a healthcare provider and an insurance company. The article details the specific steps taken by both parties to understand each other's perspectives and preferences, and how they worked together to find a mutually beneficial solution.
I selected this article because it provides a clear and practical example of how integrative conflict resolution can be applied in a real-world setting. The case study format allows the reader to understand the specific challenges that were faced by the healthcare provider and the insurance company, and how they were able to overcome them through collaboration.
The article resonated with me because it illustrates the importance of active listening and mutual understanding in conflict resolution. It emphasizes the need for both parties to clearly express their preferences and concerns, and to work towards a solution that addresses the needs of both. The article also highlights the benefits of integrative conflict resolution, such as increased satisfaction, improved relationships, and greater long-term stability.
Overall, the article is a valuable resource for anyone interested in learning about integrative conflict resolution, and serves as an excellent example of how this approach can be used to resolve disputes in the workplace. It teaches the importance of understanding and actively listening to the other party's concerns and preferences, and how to collaborate effectively to find a solution that addresses everyone's needs.
The primary reason for creating a schedule of accounts receivable is
A. to be certain the accounts in the accounts receivable ledger
match the total in the general ledger
B. to show all of the customers with open accounts over the course
of the previous year
C. to make sure that customers are invoiced the correct amount for
each purchase
D. to estimate the amount of uncollectable accounts shown in the
ledger at a given time
Answer: To be certain the accounts in the accounts receivable ledger match the total in the general ledger
Explanation:
Answer: A. to be certain the accounts in the accounts receivable ledger
match the total in the general ledger
Explanation: The primary reason for creating a schedule of accounts receivable is to reconcile the accounts receivable ledger with the general ledger, ensuring accuracy, and integrity in the financial records of the company.
Accounts Receivable Ledger: The accounts receivable ledger keeps track of all the individual customer accounts and the amounts they owe. This ledger is usually maintained separately from the general ledger, which contains all the financial transactions of the company.
General Ledger: The general ledger provides a summary of all the financial transactions of the company, including accounts receivable.
Matching the totals: By creating a schedule of accounts receivable, you can compare the total amount of accounts receivable in the accounts receivable ledger with the total amount of accounts receivable in the general ledger. This ensures that both ledgers reflect the same amount and helps identify any discrepancies or errors.
Identifying errors: If the totals don't match, it could indicate errors in recording transactions, such as missing or duplicate entries. By identifying and correcting these errors, you can maintain accurate financial records and ensure the integrity of your accounts receivable information.
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Kinds of plan after 5 year career development plan
A five-year plan is an outline of professional and/or personal goals you want to reach within the next five years. It usually includes broad goals relating to career, relationships, health, and finances that are broken down into action items and milestones.
How would you define a career?A career is when you continue doing the same kind of work. One job or several jobs might make up a career. You could work for a single business or several. Sometimes a "career path" is used to describe a career. Education, training, and professional experience all go into a career.
What does a life career entail?A person's progression through a particular occupation or a group of occupations is referred to as their career. On the other hand, a career is more than just a job, a line of work, or your occupation. It also involves how far you've come in life, as well as how you've developed professionally and personally.
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which one of the following actions is most likely to result in higher production costs per branded pair at one of your company's plants?
'Increasing the S/Q rating of brand pairs produced from 4.5 stars to 5.5 stars' is most likely to result in higher production costs per branded pair.
What is Production?
Production is the process of creating goods or services for use or sale. Production is a business process that is used to create goods and services from various resources. It involves converting raw materials, components, or parts into finished goods that can be sold in the market or used in the production of other goods and services. Production is an essential part of any business, as it is the primary means of generating revenue.
This is because producing a higher-rated brand pair requires more resources, such as higher-quality materials, more labor, and more time. Additionally, higher-rated brand pairs are likely to be more expensive to produce, due to the higher costs associated with producing them.
Hence, option D is correct.
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Complete question:
Which one of the following actions is most likely to result in higher production costs per branded pair at one of your company's production facilities?
A) Increasing total employee compensation by 3% at a production facility and, in turn, realizing a 5% increase in production facility and, in turn, realizing a 5% increase in production worker productivity
B) Increasing spending for best practice training from $2,000 per worker to $2,500 per worker.
C) Increasing expenditures for TQM/Six Sigma quality control from $1.50 to $2.00 per pair in Year 12.
D) Increasing the S/Q rating of brand pairs produced from 4.5 stars to 5.5 stars.
E) The installation of production improvement option B.
Mini Problem 2 Wayne and Wanda are filing MFJ with a 4-year-old dependent child. Wayne worked full time and earned $25,000. Wanda became a full-time student for the fall term (Aug thru Dec) and they have no other income. Their principal place of abode was in the U.S. for the entire tax year. Their federal taxable income was $2,300 and their federal tax liability before any credits is $231. While Wanda was a student, they paid $3,000 for childcare. What is the amount of line 10 from their Form 2441?
$3000 is the amount on line 6 of Form 2441.
$3000 is the maximum covered child support that can be claimed.
What is sentence of amount?
She spent an incredible amount of time planning her garden. New laws limit the amount candidates can spend. We have a wealth of resources available. = there are a lot of resources available
What are balance and amount?
An account balance is amount of money in financial account, such as a bank account, at a particular point in time. B. Have a savings or checking account. The account balance is the net amount after taking into account all debits and credits.
What is used of amount?
Use amount is the purchase price of all mortgages previously purchased by the buyer at the time of the decision but not yet repurchased by the seller or not purchased by the take-out investor at the time of the decision means the sum of the arithmetic mean of .
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As the price of a good rises
As the price of a good rises, the quantity demanded of the good falls, and as the price of a good falls, the quantity demanded of the good rises, ceteris paribus: Law of Demand.
What is law of demand?Law of demand is a demand principle that states that the higher the price the lower the demand and the lower the price the higher the demand.
Demand can be defined as the amount of goods and services that a consumer is willing and ready to buy at a particular period of time.
Both price and demand work hand in hand which implies that when the price of goods are high consumer demand for that goods will be low and the when the price is low consumer demand will be high.
Therefore we can conclude that increase in price of goods tend to lead to decrease in demand for that goods.
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The complete question is:
As the price of a good rises, the quantity demanded of the good falls, and as the price of a good falls, the quantity demanded of the good rises, ceteris paribus is referred to as:
a contribution approach income statement . multiple select question. separates costs into their fixed and variable components can assist with management decision making is prepared primarily for external reporting purposes reports both gross margin and net income
An income statement prepared using a contribution approach separates costs into their fixed and variable components, which can assist with management decision making.
This type of income statement is prepared primarily for external reporting purposes and reports both the gross margin and the net income.
One of a company's financial accounts, an income statement or profit and loss account, lists the company's revenues and costs for a specific time period.
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A form of advertising that uses rational arguments to communicate why consumers need a specific product by highlighting the benefits associated with the use of that product
Benefits are significant because they respond to your client's inquiry, "Why should I care about what you have?" Instead of just listing what you have to offer, explain to your customer how your good or service will improve their life in a meaningful way.
What is the importance of knowing the product details before you purchase it?The most crucial sales tool is product knowledge. It is challenging to persuade a customer that a particular product will meet their needs by outlining its benefits or drawbacks. This includes having knowledge of the statistics, advantages, and rivals.
You want your goods or services to have characteristics that clients consider to be worthwhile advantages. You'll boost your sales and profits by emphasizing benefits in your marketing and sales efforts. Remember that customers purchase goods and services in order to satisfy a need or solve a problem.
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2what makes person different
People differ from one other in a variety of ways depending on their personality traits, preferences, and life experiences. Finding out about other people's uniqueness and picking up on new viewpoints and civilizations is what makes life interesting.
What are some examples of personality traits?The defining characteristics of people's ideas, feelings, and behaviors are reflected in their personality traits. A person who scores highly on a certain personality trait, such as Extraversion, is likely to be sociable in a variety of contexts and throughout the course of time. Personality traits imply consistency and stability. For instance, we might use adjectives like responsible, imaginative, emotive, or extroverted to describe someone. Today, we consider these descriptors to be illustrations of personality qualities.
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Which of the following would best explain why the shift in demand from D1 to D2 would cause price to rise from P1 to P2?
a. After the shift in the demand, there would be a surplus at price P2.
b. After the shift in the demand, there would be a shortage at price P2.
c. After the shift in the demand, there would be a shortage at price P1.
d. After the shift in the demand, there would be a surplus at price P1.
Following the change in demand, there would be a economic shortage. The greatest justification for the price increase from P1 to P2 from the change in demand from D1 to D2 is provided by P1.
A market that is functioning normally has an equilibrium between the amount offered and the quantity sought at a price set by market forces. A shortage happens when the supply and demand for an item or service are out of balance. When this occurs, the market is considered to be in a state of disequilibrium. Usually, this situation only persists for a brief period of time before the commodity is delivered and the market resumes its regular course. An economic shortage occurs when the demand for goods and services outpaces the supply. In this scenario, there will be a high demand for goods or services but insufficient supply to satisfy that need, which would result in higher pricing.
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