Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Financial Econometrics Expert

Techno Enterprises is a manufacturer of microchips (Referred to as chips). Its production process is complex and involves more than 100 steps, starting with production of small, round silicon wafers and ending with chips being put into individual packages that protect them and provide connections to the products for which the chips are developed. The company uses a process costing system and has always made the simplifying assumption that wafers in production, but not yet finished, are 50 percent complete with respect to conversion costs. In the current year, the company has struggled due to a decline in computer sales and reduced demand for chips.To boost profit, the company has decided to start a very large number of wafers into production in the last few days of the year. Due to the use of ceramic carriers and other high-performance features, the Techno Enterprises production process typically takes 30 days. Explain why a starting a large number of wafers into production for Techno Enterprises will boost profit even though the chips that ultimately result from the wafers have not been sold or even completed. After reading over the situation that Techno Enterprises is facing, do you think the company's approach to boosting its profit is completely ethical? Is it sound business practice?

Financial Econometrics, Finance

  • Category:- Financial Econometrics
  • Reference No.:- M9906647

Have any Question?


Related Questions in Financial Econometrics

Economics of banking and finance assignment - competition

Economics of Banking and Finance Assignment - Competition and Stability in Banking You are required to undertake a literature review of around 2000 words in length on: The relationship between competition and financial s ...

Subject is foundation of information technologydiscussion

Subject is Foundation of Information Technology Discussion Questions To log on to a website such as G-mail or Yahoo!, you need to specify your login name and password. The site does not allow you to access your e-mail me ...

Applied finance with e-views assignment -answer all

Applied Finance with E-views Assignment - Answer ALL sub-questions - Question 1 - The Excel workfile Resit Coursework contains weekly data on two time series, namely, the FTSE 100 stock Index, UKS, and FTSE 100 Index fut ...

Financial economics problems -1 explain intuitively the

Financial Economics Problems - 1. Explain intuitively the idea of an Arrow-Debreu security. These are not observed in "real" markets, so is the concept useful? What is the link between A-D securities and options? 2. Ther ...

Questions -1 efficient government policy requires pollution

Questions - 1. Efficient government policy requires pollution reduction be made in a manner that _________________ for business. A. Ensure a suitable ROI B. Replaces regulation with litigation C. Is not cost prohibitive ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As