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655-705 (Hard)|   Weaken|      
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Subanta
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Bert's Refuse has decided to add salvage to its 03 Jul 2015, 06:44
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B
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55% (hard)

Question Stats:

68% (02:20) correct 32% (02:29) wrong based on 748 sessions

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Bert's Refuse has decided to add salvage to its business services and has offered its client, McCloud Metalworking, the following deal: Bert's will deduct the amount it receives for selling McCloud's scrap metal over the next year from the cost of refuse removal for McCloud. McCloud will pay an estimated monthly bill and, at the end of the year, Bert's will adjust the bill to reflect the true profit from its salvage of McCloud's scrap.

Which of the following, if it occurred, would constitute a disadvantage for McCloud of the plan described above?

[a]Bert's Refuse makes the same deal with another metalworking firm

[b]A steady decrease in the price for savaged scrap metal over the year that the deal is in effect

[c]McCloud receives orders for goods which generate more scrap metal than usual

[d]An increase in demand for McCloud's goods

[e]Bert's Refuse decides to salvage other materials which McCloud's does not generate as scrap
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B
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Bert's Refuse has decided to add salvage to its 03 Jul 2015, 08:09
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Bert's Refuse has decided to add salvage to its business services and has offered its client, McCloud Metalworking, the following deal: Bert's will deduct the amount it receives for selling McCloud's scrap metal over the next year from the cost of refuse removal for McCloud. McCloud will pay an estimated monthly bill and, at the end of the year, Bert's will adjust the bill to reflect the true profit from its salvage of McCloud's scrap.

Which of the following, if it occurred, would constitute a disadvantage for McCloud of the plan described above?

[a]Bert's Refuse makes the same deal with another metalworking firm

A steady decrease in the price for savaged scrap metal over the year that the deal is in effect

[c]McCloud receives orders for goods which generate more scrap metal than usual

[d]An increase in demand for McCloud's goods

[e]Bert's Refuse decides to salvage other materials which McCloud's does not generate as scrap
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Bert's assumed Sell(will calculated after 1 year)- Cost(Bill at the end of year)=True profit.Estimated Cost (monthly bill) must be paid by McCloud but Selling price amount will leads to loss/constitute a disadvantage if it is not considered.
A. [b]Same deal with another company have no effect on this stimulus
B. Correct
C. Receive orders is an advantage.Strengthens the Conclusion (profit)
D. Increase in Demand is also Strengthens the Conclusion(profit)
E. Other mterials is not an issue here.Outside the Scope
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Bert's Refuse has decided to add salvage to its 03 Jul 2015, 08:39
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[a]Bert's Refuse makes the same deal with another metalworking firmout of scope

[b]A steady decrease in the price for savaged scrap metal over the year that the deal is in effect correct ; if the price of scrap will decrease it will constitute a disadvantage for McCloud as McCloud will have to pay more

[c]McCloud receives orders for goods which generate more scrap metal than usualbut the removal would also take more time so not really a disadvantage

[d]An increase in demand for McCloud's goodsnot concerned with the increase in demend

[e]Bert's Refuse decides to salvage other materials which McCloud's does not generate as scrap we are not concerned about what Bert's refuse decides
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Bert's Refuse has decided to add salvage to its 07 Jul 2015, 13:52
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Conclusion: Bert's Refuse …... has offered its client, McCloud Metalworking, the following deal...

Premise: Bert's will deduct the amount it receives …... from the cost of refuse removal. McCloud will pay an estimated monthly bill and ...… Berts will adjust the bill to reflect the true profit from its salvage of McCloud's scrap.

Assumptions: There are no problems with the plan. McCloud will receive the amount of savings it expects.

There are two ways that you can identify that this argument uses the planning structure. First, the question stem asks about a disadvantage of a plan. Second, the argument starts, as many planning arguments do, by stating a problem. In this case, Bert's Refuse wishes to go into the salvage business and offers a deal to one of its clients, McCloud Metalworking.

The basic assumption of any planning argument is that there are no problems with the proposed plan. For this argument, one potential problem with the proposed plan would be any changes in the scrap metal market that lower Bert's profit and decrease the savings McCloud expects to see. The argument thus assumes that the market for scrap metal will remain as predicted by McCloud when they agreed to the deal.

This is a weaken question so the correct answer either introduces a possible problem with the plan or provides a further reason to believe that the plan will not be successful.

Choice A: The same deal with another metal working firm is out of scope. This answer adds new information which is irrelevant to the argument. Bert's deal with another firm will not change the savings McCloud gains from the deal.

Choice B: Correct. This answer introduces a possible problem with the plan by stating that the price for salvaged scrap metal will decline. This constitutes a disadvantage for McCloud as Bert's will have a smaller profit and McCloud's savings will not be as great as anticipated.

Choice C: Orders … which generate more scrap metal means that Bert's will have more salvage to sell and McCloud's savings will be greater. This answer strengthens rather than weakens the plan.

Choice D: An increase in the demand for McCloud's goods is, at worst, out of scope and at best, strengthens the plan. If McCloud is producing more goods, it will also produce more scrap metal, which means that Bert's will have more salvage and the savings to McCloud may increase.

Choice E: Other materials which McCloud's does not generate is out of scope. Bert's decision to salvage other materials will not affect the profit it makes from selling McCloud's scrap metal.
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Bert's Refuse has decided to add salvage to its 23 Mar 2016, 20:09
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Subanta
Bert's Refuse has decided to add salvage to its business services and has offered its client, McCloud Metalworking, the following deal: Bert's will deduct the amount it receives for selling McCloud's scrap metal over the next year from the cost of refuse removal for McCloud. McCloud will pay an estimated monthly bill and, at the end of the year, Bert's will adjust the bill to reflect the true profit from its salvage of McCloud's scrap.

Which of the following, if it occurred, would constitute a disadvantage for McCloud of the plan described above?

[a]Bert's Refuse makes the same deal with another metalworking firm

[b]A steady decrease in the price for savaged scrap metal over the year that the deal is in effect

[c]McCloud receives orders for goods which generate more scrap metal than usual

[d]An increase in demand for McCloud's goods

[e]Bert's Refuse decides to salvage other materials which McCloud's does not generate as scrap
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BR -> will receive $ for refuse removal. -> generate scrap metal. -> scrap metal sold back to MM.
MM has to pay the difference between cost to refuse and the cost of scrap metal.

the problem for MM will be if the costs either increase while the price for scrap remain the same or stay the same while the price for scrap decreases.

A - irrelevant
B - aha, cost remain the same, but the price decreases...this will not be good for MM.
C - irrelevant.
D - so what does it have to do with the refuse removal?
E - so what? MM will decide to salvage only the materials that will generate scrap metal. so out.

B
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Bert's Refuse has decided to add salvage to its 23 May 2020, 10:16
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I know B but can anyone help me to understand why not E?please help me to eliminate it.

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Bert's Refuse has decided to add salvage to its 26 Aug 2020, 02:00
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Conclusion: Bert's Refuse …... has offered its client, McCloud Metalworking, the following deal...

Premise: Bert's will deduct the amount it receives …... from the cost of refuse removal. McCloud will pay an estimated monthly bill and ...… Berts will adjust the bill to reflect the true profit from its salvage of McCloud's scrap.

Assumptions: There are no problems with the plan. McCloud will receive the amount of savings it expects.

There are two ways that you can identify that this argument uses the planning structure. First, the question stem asks about a disadvantage of a plan. Second, the argument starts, as many planning arguments do, by stating a problem. In this case, Bert's Refuse wishes to go into the salvage business and offers a deal to one of its clients, McCloud Metalworking.

The basic assumption of any planning argument is that there are no problems with the proposed plan. For this argument, one potential problem with the proposed plan would be any changes in the scrap metal market that lower Bert's profit and decrease the savings McCloud expects to see. The argument thus assumes that the market for scrap metal will remain as predicted by McCloud when they agreed to the deal.

This is a weaken question so the correct answer either introduces a possible problem with the plan or provides a further reason to believe that the plan will not be successful.

Choice A: The same deal with another metal working firm is out of scope. This answer adds new information which is irrelevant to the argument. Bert's deal with another firm will not change the savings McCloud gains from the deal.

Choice B: Correct. This answer introduces a possible problem with the plan by stating that the price for salvaged scrap metal will decline. This constitutes a disadvantage for McCloud as Bert's will have a smaller profit and McCloud's savings will not be as great as anticipated.

Choice C: Orders … which generate more scrap metal means that Bert's will have more salvage to sell and McCloud's savings will be greater. This answer strengthens rather than weakens the plan.

Choice D: An increase in the demand for McCloud's goods is, at worst, out of scope and at best, strengthens the plan. If McCloud is producing more goods, it will also produce more scrap metal, which means that Bert's will have more salvage and the savings to McCloud may increase.

Choice E: Other materials which McCloud's does not generate is out of scope. Bert's decision to salvage other materials will not affect the profit it makes from selling McCloud's scrap metal.
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Bert's Refuse has decided to add salvage to its 21 Nov 2024, 06:43
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