Compared to the past, the importance of firms' intangibles has increased. Therefore the importance of a firm's book value has diminished as part of the firm's total stock market valuation.
Intangibles, such as intellectual property, brand reputation, customer relationships, and technological advancements, have become crucial drivers of competitive advantage and value creation in the modern business landscape.
As a result, the importance of a firm's book value, which primarily captures tangible assets and liabilities, has diminished as part of the firm's total stock market valuation. Book value represents the net value of a company's assets after subtracting its liabilities, as recorded in the accounting books.
It primarily includes tangible assets like property, plant, and equipment, inventory, and cash. However, book value fails to account for the value derived from intangible assets, which have become increasingly significant contributors to a company's success and market value.
Investors and markets now recognize that a firm's intangible assets, such as brand equity, innovation capabilities, and human capital, can have a substantial impact on its future earnings potential and growth prospects.
Consequently, the market valuation of a company is increasingly driven by factors beyond its book value, with intangible assets playing a crucial role in shaping investors' expectations and perceptions of the firm's future performance.
In conclusion, as the importance of firms' intangibles has grown, the significance of a firm's book value as part of its total stock market valuation has diminished. Investors and markets now recognize the influence of intangible assets in driving a company's success and market value.
Therefore, when evaluating and valuing a firm, it is essential to consider and incorporate the value of intangibles alongside traditional tangible assets to obtain a more comprehensive understanding of the firm's true worth.
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Business; an organization that uses resources to produce a product is known as a ?
O Private Company
O Shop
O Firm
O Enterprise
Answer:
Firm
Explanation:
For setting long-term prices a company should use full product costs. Full product costs for pricing purposes
Question 7 options:
include all manufacturing costs only.
equals manufacturing and selling costs.
include direct costs only.
does not include fixed overhead.
include all direct costs plus an appropriate allocation of the indirect costs of all business functions.
The approach takes into account all the costs associated with producing and selling a product, providing a more accurate basis for setting prices. The correct answer is: "For setting long-term prices, company should use full product costs, which include all direct costs plus an appropriate allocation of the indirect costs of all business functions."
When setting long-term prices, it is important for a company to consider all costs associated with producing and selling a product. This includes both direct costs, such as materials and labor, as well as indirect costs, such as overhead expenses. Full product costs for pricing purposes take into account all direct costs, which are costs that can be easily traced back to the production of a specific product. These costs include materials, labor, and any other costs directly associated with the production process.
In addition to direct costs, full product costs also include an appropriate allocation of the indirect costs of all business functions. Indirect costs are costs that are not directly tied to the production of a specific product, but still contribute to the overall cost of doing business. These costs can include things like rent, utilities, and administrative expenses. By including both direct and indirect costs in the calculation of full product costs, a company can ensure that they are pricing their products in a way that covers all of their expenses and allows for long-term profitability.
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Which best diagrams the correct obstacle to the example?
economic trade this is your answer hope it's helpful to you
Economic Trade is the answer.
Unlike price ceilings, price floors lead to very positive effects when properly implemented.
a. True
b. False
This is untrue; price floors have several unforeseen consequences which are rarely acknowledged the decision-makers. Price ceilings prevent an increase in price from going over a certain point.
What function do policymakers serve?The function of the law maker is to act as a conduit for information gathering through study and consultation, to distil and extrapolate from the information a policy or collection of policies that help to forward the chosen course of action.
What kind of people make policy?The policy maker is a person who develops concepts and strategies, particularly those used by an organisation or a government. The US president, a school system, a company's executive committee, and a mayor are all examples of policy makers.
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Jose gross weekly salary as a logger is $630. He pays 6.2% Social Security tax, 1.45% Medicare tax, and $14.20 for health insurance. What is Jose monthly net pay?
Answer:
$568
Explanation:
Gross salary = $630
Social security tax = 6.2%
Medicare tax = 1.4%
Health insurance = $14.20
We add up what is paid as tax
= 6.2 + 1.4 = 7.6%
7.6% of $630
= 0.076 x 630
= $47.88
So he pays tax of 47.88 dollars from his gross salary
We add his tax to what he pays for health insurance
= 47.88 + 14.20
= $62.08
the formula for net pay:
gross salary - deductions
= $630 - $62.08
= $567.92
this is approximately $568
thank you!
All companies operate in a broad ______-environment that is made up of six components, including political factors and technological factors. Multiple choice question. micro meso para macro
Answer:
The word that is underlined, that's the answer; Macro
Explanation:
hope this helps.
Answer:
the answer is macro .
Explanation:
MARK ME AS A BRIANLIEST3. ______ are defined as goods or services that are required for health and safety.
Occupational Health and Safety are defined as goods or services that are required for health and safety. Information standards are guidelines governing the information that must be provided to consumers when they purchase specific goods.
What is the safety of goods?A safe product is one that delivers either no risk or a minimum tolerable level of risk, taking into account the product's typical or reasonably foreseeable use and the need to maintain a high level of consumer protection.
Occupational health and safety is a multidisciplinary discipline that deals with all elements of workplace health and safety, with a heavy emphasis on preventing workplace dangers.
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BI represents a bold new paradigm in which the company's business strategy must be aligned to its business intelligence analysis initiatives. Group of answer choices True False
The answer is, False.
A collection of tools (technology, applications, etc.) known as business intelligence (BI) is used to enable better business decisions. BI is a tool for achieving goals, not a goal in and of itself.BI is a crucial tool since technology is advancing quickly and steadily.For instance, it took Walmart several decades to overtake Sears as the leading retailer in the United States, but Amazon did so in only a few short years. Our world has radically transformed as a result of new technology, and no organization can afford to fall behind.What do you mean by business intelligence?Business intelligence (BI) is a technology-driven method for data analysis and information delivery that aids managers, employees, and executives in making wise business decisions.What is business intelligence give examples?BI encourages the use of historical data to promote fact-based decision making as opposed to assumptions and intuition. Data analysis is carried out by BI tools, which also produce reports, summaries, dashboards, maps, graphs, and charts to give users a thorough understanding of the nature of the business.Learn more about business intelligence here:
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failure to record an accrued liability causes a company to
Failure to record an accrued liability causes a company to c. understate net income.
Accrued liabilities are expenses that a company has incurred but has not yet paid or recorded in its books. These expenses are recognized and recorded as liabilities because they represent obligations that the company must settle in the future.
Examples of accrued liabilities include salaries payable, interest payable, or taxes payable.
If the accrued liability is not recorded, the associated expense is not recognized in the financial statements. As a result, expenses are understated, not overstated.
Accrued liabilities are recorded as liabilities on the balance sheet. Failure to record an accrued liability means that the liability is not included in the company's financial statements. This omission does not lead to an overstatement of assets.
Stockholders' equity is affected by various factors, including revenues, expenses, and gains or losses. Failure to record an accrued liability does not directly impact stockholders' equity. It primarily affects net income, which subsequently affects retained earnings, a component of stockholders' equity.
So, the failure to record an accrued liability causes a company to understate net income.
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The complete question is:
Failure to record an accrued liability causes a company to:
a. overstate expenses
b. overstate assets
c. understate net income
d. overstate stockholders' equity
Let's consider how speculation can affect exchange rates.
For example, if investors/speculators expect interest rates will fall in the U.S. compared with Canada and/or inflation in the U.S. will be lower than inflation in Canada, then investors/speculators will buy more U.S. financial investments (bonds, etc.) and fewer Canadian investments. Consequently, the US$ will appreciate relative to the C$, as demand for the US$ rises.
What examples do you have of how speculation could affect, or has affected, exchange rates?
Speculation in forex trading is a common occurrence that affects exchange rates. It occurs when traders try to predict the future direction of the market and make trades based on their predictions. Here are a few examples of how speculation can affect exchange rates.
If investors believe that a country's economy is going to weaken, they will sell that country's currency, and this can lead to a depreciation of the currency.
If investors believe that a country's central bank is going to raise interest rates, they will buy that country's currency, and this can lead to an appreciation of the currency.
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Business lab!! need help
A market overview, including a summary of challenges and opportunities
Top three sectors for export, with detail of major items or sub-sectors to consider. (Since this is an imaginary assignment, rather than coming to this research with your product already in mind and ready to export, you will research what product would be best to export to your country of choice. An easier task!)
How to sell US products in this market
A recommendation on whether it is a good time (politically, and economically) to export to this country
France:
China:
Japan:
Top three sectors for export, with detail of major items are
Global Oil & Gas Exploration & Production. Global Pharmaceuticals & Medicine Manufacturing. Global Car & Automobile Manufacturing. .The products are:
Refined PetroleumCrude PetroleumCarsHow to sell us products in the international market?International markets or your own website are your two choices. Alibaba, Etsy, and eBay are examples of international marketplaces where users anticipate purchasing from vendors located in distant nations.
The direct sale of goods and/or services to another nation is known as exporting. It is possibly the least risky and most well-known way to join a foreign market.
Therefore, some global market entry strategies for any kind of product are:
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How responsible should sport/event organizations, celebrities, and athletes be for keeping their various publics happy? We know that good publicity boosts goodwill and profits. But, should individuals have to keep their personal beliefs private so they won’t offend anyone? For example, some musicians may highlight their political views on stage at their concerts. Or, an athlete may make comments in an interview that could offend certain groups. Perhaps he’s an avid hunter, a hobby that some animal rights activists would certainly not support. What do you think? Where should celebrities and athletes draw the line between building fan support and being true to themselves?
Answer:
I dont really know
Explanation:
Which person used a cost-saving strategy when deciding how to spend their money?
a. when selecting a new tablet, Rosita carefully read about the features of each model.
b. when purchasing a new jacket, Thao chose the one that was manufactured locally.
c. when choosing which coffee to buy, Ivan chose the brand with the "fair trade" label.
d. when buying a used dirt bike, Fabian negotiated with the seller to get a better deal.
will give brainliest!
The person who used a cost-saving strategy when deciding how to spend their money is the Fabian who negociated with the seller to buy a used dirt bike to get a better deal.
What is cost-saving stategy?The strategy in which we analysis the basic requirements which are necessary and on which minimum cost can be made in a business
What is a dirt bike?The bikes which are generally used in dirts to have races or to have friction with the roads with dirts.
Hence, option D is the correct answer
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Click this link to view O*NET’s Tasks section for General and Operations Managers. Note that common tasks are listed toward the top, and less common tasks are listed toward the bottom. According to O*NET, what are some common tasks performed by General and Operations Managers? Check all that apply.
filing paperwork and entering data into computers
researching, purchasing, installing, and maintaining computers and office technology
reviewing financial statements, sales and activities reports, and other data
overseeing activities related to making products or providing services
managing staff, preparing work schedules, and assigning duties
directing and coordinating activities of businesses or departments
Answer:
C). Reviewing financial statements, sales, and activities reports, and other data
D). Overseeing activities related to making products or providing services .
E). Managing staff, preparing work schedules, and assigning duties
F). Directing and coordinating activities of businesses or departments.
Explanation:
The general and operations managers are responsible for managing the use of resources in the organization and supervising the budget and finances. He/she assesses the financial statements associated with sales, activity reports, and other data related to the projects going on. He/she also looks after the activities associated with making products or dispensing services, preparation of work schedules, managing the staff, assigning responsibilities to them, and directing the staff appropriately to ensure coordination among various activities that are going on at different levels and departments which helps in collectively bringing out the desired output for the organization. Thus, options C, D, E, and F are the correct answers.
Answer:
3,4,5 and 6
Explanation:
3. reviewing financial statements, sales and activities reports, and other data
4. overseeing activities related to making products or providing services
5. managing staff, preparing work schedules, and assigning duties
6. directing and coordinating activities of businesses or departments
Done on Edg Jan.2021
In 2020, Courtney, 16 and a dependent of her mother, had earned income of $4,000 and interest income (unearned) of $9,500. What is Courtney's federal income tax liability (before credits)? Courtney's mother is in the 35% marginal tax bracket.
Answer:
The Tax Liability is $1,400
Explanation:
Income is only taxable when it is earned. Any unearned income is not taxable
As unearned income is not taxable then there will be no tax on the unearned interest income of $9,500.
The only taxable income is earned income of $4,000
Use the following formula to calculate the tax liability
Tax liability = Taxable income x Tax rate
Where
Taxable income = $4,000
Tax rate = 35%
Placing values in the formula
Tax liability = $4,000 x 35%
Tax liability = $1,400
Under a contractionary taxation policy, the government can reduce the deficit by
A) increasing taxes.
B) reducing taxes.
C) increasing spending.
D) increasing inflation.
The Answer is A) increasing taxes.
Answer:
c
Explanation:
not sure but I tried may best tho
Answer:
A) increasing taxes.
Explanation:
"What is strategic flexibility? Use an example in your explanation. Why is it thought of as a third generic business level strategy?
Strategic flexibility refers to an organization's ability to adapt and respond to changing market conditions, customer needs, and competitive landscapes.
It involves being agile and proactive in making strategic decisions and adjustments to stay ahead in the dynamic business environment.
Strategic flexibility is considered a third generic business-level strategy because it complements the traditional strategies of cost leadership and differentiation. It allows companies to continuously innovate, seize new opportunities, and effectively manage uncertainties and risks.
Strategic flexibility is crucial in today's rapidly evolving business landscape. It enables organizations to anticipate and respond to changes in customer preferences, technological advancements, industry trends, and competitive pressures.
Unlike cost leadership and differentiation strategies, which focus on achieving sustainable competitive advantage through efficient operations or unique value propositions, strategic flexibility emphasizes the ability to adapt and change strategically.
For example, consider a technology company that operates in the smartphone industry. By adopting strategic flexibility, the company constantly monitors market trends and customer demands.
If a new technology or feature gains popularity, the company quickly adjusts its product development and marketing strategies to incorporate the emerging trend.
This may involve modifying product specifications, redesigning marketing campaigns, or forming partnerships with complementary technology providers. The company's ability to adapt to market changes allows it to stay competitive and capture new market opportunities.
Strategic flexibility is considered a third generic business-level strategy because it complements cost leadership and differentiation.
While cost leadership focuses on achieving operational efficiency and differentiation emphasizes creating unique value for customers, strategic flexibility enables organizations to navigate the ever-changing business landscape by being agile, innovative, and responsive.
It acknowledges that competitive advantage can also come from the ability to adapt and seize new opportunities. By embracing strategic flexibility, companies can position themselves for long-term success in dynamic markets and gain a competitive edge.
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Question 3 (7 points) The standard cost card for a company's product shows the following amounts for materials: Direct materials: 4.5kgs per unit at $5.00 per kg During a recent month, the company planned to produce 3,200 units and had the following actual operating results: a. 3,000 units were produced. b. 14,000 kg of material was purchased at a cost of $5.20 per kg. c. 1,000 kg of material was still in inventory at the end of the month (there was no opening inventory). Required: Calculate the direct material price and quantity variances. Show your work and label your variances with the name of the variance and favourable (F) or unfavourable (U). (7 marks) Material variances model analysis OR scroll down for formula analysis table:
To calculate the direct material price and quantity variances, we compare the actual usage and cost of materials with the standard amounts specified on the cost card. The variances indicate whether the actual price paid for materials and the actual quantity used were favorable (F) or unfavorable (U) compared to the standard.
To calculate the direct material price and quantity variances, we will use the following formulas:
1. Direct Material Price Variance:
Direct Material Price Variance = (Actual Price - Standard Price) * Actual Quantity Purchased
In this case:
Actual Price = $5.20 per kg
Standard Price = $5.00 per kg
Actual Quantity Purchased = 14,000 kg
Direct Material Price Variance = ($5.20 per kg - $5.00 per kg) * 14,000 kg
2. Direct Material Quantity Variance:
Direct Material Quantity Variance = (Actual Quantity Used - Standard Quantity) * Standard Price
In this case:
Actual Quantity Used = 3,000 units * 4.5 kg per unit = 13,500 kg
Standard Quantity = 3,200 units * 4.5 kg per unit = 14,400 kg
Standard Price = $5.00 per kg
Direct Material Quantity Variance = (13,500 kg - 14,400 kg) * $5.00 per kg
The resulting variances will indicate whether the actual price paid for materials and the actual quantity used were favorable (F) or unfavorable (U) compared to the standard.
In summary, the direct material price variance is calculated by comparing the actual price paid per kg of material with the standard price, multiplied by the actual quantity purchased.
The direct material quantity variance is calculated by comparing the actual quantity used with the standard quantity, multiplied by the standard price. The variances will provide information on whether the actual usage and cost of materials were favorable or unfavorable compared to the standard.
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J is issued a Life Insurance policy with a death benefit of $100,000. She pays $600 per year in premium for the first 5 years. The premium then increases to $900 per year in the sixth year, and remains level thereafter. The policy's death benefit also remains at $100,000. Which type of Life Insurance policy is this?
Answer:
Modified Premium Life
Explanation:
The modified premium life is the whole life insurance policy in which the insured person paid the lower amount of premium as compared with the agreed amount for the given time period. When the given time period is done so the payment of the premium should be increased and it can be high as compared to the normal amount
So this means that the premium should be less for 5 years and it could be increased in the sixth year and so on
Therefore the option d is correct
Investor presentations of ________ provide an opportunity for discussions to take place regarding the continuing corporate performance on ________ value creation story and a ________ value creation plan.
a) short-term plans; short term; short term
b) short-term plans; long term; long term
c) long-term plans; short term; long term
d) long-term plans; long term; long term
Discussions on the ongoing corporate performance on a long-term value creation story and a long-term value creation strategy can be had during investor presentations of long-term plans.
We urge leaders to prioritize long-term value creation as a starting point when trade-offs need to be made because of the advantages it brings for resource allocation and economic health. Consider your staff members to be stakeholders.
Due to their managerial expertise in fields like planning, budgeting, purchasing, and human resource management, these companies bring value. enabling the business to concentrate its efforts on more desirable possibilities.
The main objective of a corporation is to maximize short-term gains for all of its stakeholders. When a business examines its stakeholders and its mission statement as well as competitors,
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9. If you found that you were in financial trouble because of credit and had great difficulty paying your monthly bills, what would you do?
Answer:
You would have to cut down on some luxuries, like lots of foods, amusement parks, shopping trips, etc. If you have have extra hours, work more hours, quite possibly take another job.
Explanation:
Which of the following terms describes the level of harm that can result from a threat exploiting a vulnerability in an asset?
A. Threat
B. Likelihood
C. Impact
D. Damage
C. Impact describes the level of harm that can result from a threat exploiting a vulnerability in an asset.
A person or group is deemed vulnerable when there is a risk of suffering or injury, most often as a result of being exposed to a threat. A range of variables, including social, political, economic, and environmental vulnerability, can be used to rank the top 100 most vulnerable nations in the world.
Rankings, on the other hand, may fluctuate depending on how vulnerability is calculated and which specific symptoms are considered. To insert a malicious file into the vulnerable a, malicious software would need to exploit the weaknesses.
The Cityzens were susceptible due to Laporte's knee injury early in the season.
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tions (Online
Virtual)
Click this link to view O*NET's Wages and Employment section for Construction Managers. According to O*NET,
what is the projected growth for this career between 2019-2029?
average
O much faster than average
o little or no change
o slower than average
Answer: much faster than average
Explanation: Construction managers are the people that are responsible for the coordination and supervision of projects that has to do with construction of building, bridges, road, hospitals etc.
The construction manager is responsible for monitoring finances and ensuring that every firm of hazard is removed from the workplace.
According to O*NET, the projected growth for this career between 2019-2029 would be much faster than average.
Therefore, the correct option is B.
B- Much Faster Than Average
Explanation:Attached is the O*Net conclusion and my Edge answer. Please read the question carefully to make sure that you are answering the right one, this is for Construction Managers
You have to define a regression or a classification problem which has a business application based on a dataset of your choice. A Machine Learning project is generally not linear but will consist broadly of the following major steps.
Define Problem
Prepare Data
Data understanding (EDA)
Define the solving methodology
Model building
Evaluate and compare models
Improve Model
Report Results
What you will have to submit?
1. Jupyter notebook with well commented Python code and results.
2. A report with description of the steps carried out and inference.
For the regression problem, feature selection should have a proper statistical explanation, residual analysis, outlier analysis, and proper steps to further improve your model should be clearly carried out and described in the report.
For the classification problem, some explanation on why the considered features have been selected to build the model has to be provided. Comparisons have to be carried out between at least two classification algorithms
Regression Problem:
The problem is to predict the price of used cars based on various features such as the car's brand, model, year of manufacturing, mileage, fuel type, and other relevant factors. This regression problem has a business application in the automotive industry, as it can help car dealerships or individuals estimate the value of their used cars or determine the appropriate price for selling or buying a used car.
Major Steps in the Machine Learning Project:
1. Define the Problem:
- The problem is to predict the price of used cars based on given features.
- The dataset consists of historical data on used cars, including their features and corresponding prices.
2. Prepare Data:
- Load the dataset and perform necessary data preprocessing steps such as handling missing values, encoding categorical variables, and scaling numerical features if required.
- Split the dataset into training and testing sets.
3. Data Understanding (EDA):
- Perform exploratory data analysis (EDA) to gain insights into the dataset and understand the relationships between the features and the target variable.
- Analyze the distribution of the target variable (price) and examine the correlations between features.
4. Define the Solving Methodology:
- Choose an appropriate regression algorithm(s) to solve the problem.
- Select evaluation metrics suitable for regression, such as mean squared error (MSE) or root mean squared error (RMSE).
5. Model Building:
- Build regression models using the selected algorithms, considering different hyperparameter settings.
- Train the models using the training dataset.
6. Evaluate and Compare Models:
- Evaluate the trained models using appropriate evaluation metrics.
- Compare the performance of different regression models and select the best-performing one based on the evaluation results.
7. Improve Model:
- Perform feature selection techniques to identify the most relevant features for the regression task.
- Analyze the residuals of the best model and identify any patterns or outliers that may require further investigation or preprocessing.
8. Report Results:
- Prepare a Jupyter notebook with well-commented Python code and present the results of each step.
- Provide a report describing the steps carried out, the reasoning behind feature selection, comparisons between different regression models, and any improvements made to the initial model.
- Include visualizations, tables, and interpretations to support the findings and conclusions.
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Checking account transactions are NOT reported to the credit bureaus and do not affect your credit score. Why is it still important to manage your checking account well?
Answer: Too see if anyone is stealing or charging extra fees
Explanation:
what statement best illustrates an example of economic specialist
Additive manufacturing solutions brooklyn center mn.
Additive manufacturing, also known as 3D printing, has become an increasingly popular technology in recent years. This technology allows for the creation of three-dimensional objects by adding layers of material on top of each other.
Brooklyn Center, MN is home to a number of additive manufacturing solutions providers. These companies offer a range of services, from prototyping and design to production and distribution. Some of the key players in this space include Proto Labs, Stratasys, and 3D Systems.
Proto Labs is a digital manufacturing company that offers a variety of services, including 3D printing, CNC machining, and injection molding. Their additive manufacturing capabilities include both stereolithography (SLA) and selective laser sintering (SLS) technologies. They also offer a range of materials, including various plastics and metals.
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The Sterling Tire Company’s income statement for 20XX is as
follows:
STERLING TIRE COMPANY
Income Statement
Year ended December 31, 20XX
Sales (20,000 tires
at $80 each)
$1,600,000
Less: Variable costs (20,000 tires at $55) : 1,100,000
Contribution margin 500,000
Less: Fixed costs 300,000
Earnings before interest and taxes (EBIT) 200,000
Interest expense 75,000
Earnings before taxes (EBT) 125,000 Income tax expense (30%) 37,500 Earnings after taxes (EAT) $ 87,500
Given this income statement, compute the following: a. Degree of operating leverage. (Round the final answer to 2 decimal places.) DOL____. b. Degree of financial leverage. (Round the final answer to 2 decimal places.)
The Degree of operating leverage, given Sterling Tire Company’s income statement is 2. 5.
The Degree of financial leverage, would be 1. 6.
How to find the Degree of operating leverage ?The Degree of Operating Leverage for Sterling Tire Company’s income statement can be found by the formula:
= Contribution margin / EBIT
= 500, 000 / 200, 000
= 2. 5
How to find the Degree of Financial Leverage ?The Degree of Financial Leverage can be found by the formula:
= EBIT / ( EBIT - Interest )
= 200, 000 / ( 200, 000 - 75, 000 )
= 1. 6
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Henry recently set up a retail store in his hometown. He studied the pattern that other storeowners followed in obtaining new customers. All their current customers had referred the store to their friends and family. Their awareness basically spread through word-of-mouth. Henry knew that his store offered the same quality as the other stores did. His store was also on the same street as the other retail stores. Given the setting, the other storeowners were already charging their customers the bare minimum in order to remain competitive. Which P of marketing should Henry concentrate on to distinguish his retail store?
Answer :
Promotion is the P of marketing Henry may focus on to differentiate his retail shop.
Explanation :
In marketing, there are seven (7) P's that make up the marketing mix. The four (4) most important P's in the marketing mix are P-product, P-price, and P-place. P-promotion According to the text, Henry cannot utilize the first P, which stands for product, because he is aware that his store offers the same quality as the others.
Henry can't utilize the second P, Price, as a marketing technique since he knows that other business owners are already charging the bare minimum to stay competitive. Henry can't utilize the third P, which stands for Place, because his business is on the same street as the other retail stores, and he can't improve on that. Henry's lone marketing tool for beating the competition is the fourth P, which stands for Promotion.
This is because word-of-mouth knowledge established by other business owners is insufficient to create widespread awareness; word-of-mouth can only reach friends and relatives. As a result, the P in marketing that Henry may use is Promotion. He may achieve this by creating global awareness through advertisements on television, radio, social media, printing handbills, and sales promotions such as lottery draws, festive sales, clearance discounts, and offering consumers bonuses such as the buy three, get one free promotion.
Which accounting concept is used in each of the following accounting treatment?
The cost of a tape dispenser has been charged to an expense account, although in fact it could still be in use in ten years’ time.
A sole proprietor has sold his private house, but has not recorded anything about it in the business records.
A debt has been written off as a bad debt even though there is still a chance that the debtor eventually may be able to pay it.
A machine has been bought for an exceedingly low figure,and it has been entered in the asset account at that figure even though it is worth more.
A motor van broke down in December , 2017. The repair bill for it was not until 2018 yet it has been treated as a 2017 expense.
The accounting concepts that provide guidance for recording the following business events are as follows. The business transactions are numbered from (a) to (e) below:
1) Materiality Concept is applied because the impact of the cost of the tape dispenser being "expensed" is not significant on the reader of the financial statement.
2) Entity Concept requires separation between the finances of the owner from the finances of the business. The business is a separate economic unit distinct from the sole proprietor.
3) Prudence Concept demands that expenses (like the bad debt written off) and liabilities are not underestimated and revenues and assets should not be overestimated.
4) Historical Cost Concept: Generally accepted accounting principles require the initial recognition of an asset at its purchase cost and not fair value.
5) Accrual Concept and Matching Principle: The accrual concept requires that expenses that have been incurred for a period should be accounted for in that period, whether cash payment is made or not. The matching principle states that expenses (Van Repair Expense) should be matched to the revenue that they generate.
Thus, accounting concepts are the basic assumptions, rule, and principles for recording business transactions and events and preparing accounts and financial statements.
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