Operating leverage can be used to measure: fixed costs.
A cost-accounting method called operating leverage assesses how much a company or project can raise operating income by raising revenue. A company with significant operating leverage creates sales with a high gross margin and low variable costs.
By deducting the variable costs of sales and dividing the result by sales less variable costs and fixed costs, it is also possible to get the operating leverage ratio.
The formula for calculating operating leverage is quantity multiplied by the difference between the price and the variable cost per unit divided by the sum of the quantity multiplied by the fixed operating costs minus the variable cost per unit.
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Choose the statement below that explains what "closing" means. Multiple choice question. Closing means to bring an account balance to zero. Closing means to transfer an expense account's balance to the income statement. Closing means to transfer the balance in an account to an asset account. Closing means to adjust an account's balance to its correct amount.
The statement that explains what "closing" means is to bring an account balance to zero.
What is an account closing?It involves resetting the balances of the temporary & permanent accounts in which the balance of temporary accounts is zero and the balance of the permanent accounts increase. In account, the income summary is important in a closing entry as this is the summary used in the aggregation of all income account.
The closing entry sequences are transfer of all revenue accounts into the income summary, closing of all expenses by crediting the expense accounts and debiting income summary closing of the income account and transfer of all income statement balances to retained earnings.
In conclusion, the statement that explains what "closing" means is to bring an account balance to zero. Therefore, the Option A is correct.
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Kingery corporation has current assets of $1,800,000 and current liabilities of $750,000. if they pay $350,000 of their accounts payable with cash what will their new current ratio be?
1,800,000-$350,000=$1,450,000
$750,000-$350,000=$400,000
$1,450,000/$400,000=3.625
What is the Current Ratio?
The working capital ratio, or current ratio, measures a company's ability to pay short-term debt that is due within a year. The ratio takes into account the relative importance of total current assets to total current liabilities. It demonstrates how a company's finances are going and how it might use the most liquidity possible from its current assets to settle debt and other obligations. The current ratio method makes it simple to determine a company's liquidity (below).
Current Ratio = Current Assets / Current Liabilities
Resources that can be quickly turned into cash in a year or less are referred to as current assets.
Cash includes legal tender notes, coins, undeposited customer checks, checking and savings accounts, and small amounts of cash.
Several other financial measures are grouped together as liquidity ratios, including the current ratio. All of these ratios evaluate a company's activities in terms of how financially stable it is in comparison to its outstanding debt. Investors, creditors, and suppliers of a company must all make decisions based on their understanding of the current ratio. The current ratio is a crucial instrument for determining whether their company interest is viable.
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The effective annual rate (ear) takes into account the ______ of interest that occurs within a year.
The effective annual rate (ear) takes into account the Compounding of interest that occurs within a year. Compounding method is the process whereby interest is credited to an existing principal amount as well as to interest already paid. The compounding method was popularized by investor Warren Buffet who continued to invest his money so that he was able to become one of the richest people in the world.
An effective annual interest rate is the real return on a savings account or any interest-paying investment when the effects of compounding over time are taken into account. It also reflects the real percentage rate owed in interest on a loan, a credit card, or any other debt.
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Which step in the public policy cycle usually coincides with the federal budget process?
Evaluation step in the public policy cycle usually coincides with the federal budget process.
Policy Evaluation is a systematic collection and analysis of the information to make the judgements about characteristics, activity, context and the outcome of more than one domain. Evaluation used to inform and improve policy development, implementation, adoption, and effectiveness. It also helps to builds the evidence base for the policy interventions.
It also help governments improve the design and implementation of public policies that, can lead to prosperity for their country and well-being for the citizens. These evaluation contribute in overall development of the economy.
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The scientific revolution established new methods of investigating the world, including?
Including the testing of hypotheses
What are Testing Hypotheses?In statistics, hypothesis testing is the process by which a population parameter assumption is put to the test. Depending on the type of data used and the goal of the research, the analyst will choose a certain approach.
Utilizing sample data, hypothesis testing is a method used to determine whether a hypothesis is tenable. Such information could originate from a bigger population or a data-generating process. In the following descriptions, "population" will be used to refer to both of these scenarios.
A statistical sample is tested by an analyst during hypothesis testing with the aim of demonstrating the plausibility of the null hypothesis.
By measuring and reviewing a representative sample of the population under study, statistical analysts can evaluate a theory. Every analyst employs a random population sample to test the null hypothesis and the alternative hypothesis.
A null hypothesis may declare, for instance, that the population means the return is equal to zero. The null hypothesis is typically an equality hypothesis for population parameters. A null hypothesis is effectively the opposite of the alternative hypothesis (e.g., the population means the return is not equal to zero). They cannot both be true because they are mutually exclusive.
Therefore, one of these two hypotheses will be true.
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Amber starts a small firm that manufactures clothing for leading fashion brands in the united states. what would likely be a principal immediate threat to this firm?
The thing that would most likely be a principal immediate threat to this firm is Rapidly advancing technology
What is a Business?This refers to the venture that is embarked on, primarily for the aim of making a profit.
Hence, we can see that The thing that would most likely be a principal immediate threat to this firm is Rapidly advancing technology
This is because with advances in technology, there would be cheaper alternatives that are better to manufacture the clothing and she would be pushed out of business.
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Policyholder j has a no-fault auto policy. upon being hit by a driver that ran a stop light, j suffers a broken leg. whose insurance company will pay for j's injury?
Policyholder has a no-fault auto policy. upon being hit by a driver that ran a stop light, j suffers a broken leg. No-fault insurance means that if you're injured in a car accident, your own car insurance coverage will pay some or all of your out-of-pocket .
What is a policyholder?The individual who owns the insurance policy is referred to as a policyholder (or policy holder). The only individual often able to alter the insurance is the policyholder. Additionally, it is the policyholder's responsibility to ensure that premium payments are current. Your contract may include a list of additional drivers in addition to the policyholder. Anyone covered to drive who is not the policyholder is considered an additional driver.
An auto insurance policy's policyholder is often the car's owner, but this isn't always the case. For instance, some businesses demand that the principal driver be the policyholder, whether or whether they own the vehicle. Even if you don't own a car, you are still able to purchase insurance.
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When a company uses a marketing discipline and combines computer technology and databases with customer service and marketing communications it is known as?
The marketing mix refers to the set of actions, or techniques, that a firm does to promote its brand or product in the market.
What is marketing mix?A foundational business model known as the "marketing mix" historically focused on the four Ps of product, price, location, and promotion (also known as the "4 Ps"). The phrase "collection of marketing instruments that the firm utilizes to pursue its marketing objectives in the target market" refers to the marketing mix.
Early in the twenty-first century, marketing theory first appeared. The modern marketing mix was initially published in 1984 and has since evolved into the framework for all marketing management choices.
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If a firm has had an agency conflict which is reflected by a poor performing stock for a long period of time, then the firm may become a target of:________
If a firm has had an agency conflict which is reflected by a poor performing stock for a long period of time, then the firm may become a target of a corporate raider.
An investor who purchases a sizable number of shares in a company whose assets seem to be undervalued is known as a corporate raider.
What is corporate raid?
A corporate raid is the process of purchasing a sizable stake in a company and then utilizing shareholder voting rights to force the company to pursue innovative actions intended to raise share value, typically in opposition to the wishes and practices of the corporation's current management. In the United States, corporate raids were particularly prevalent in the 1970s, 1980s, and 1990s. By the end of the 1980s, management of many large publicly traded firms had implemented legal countermeasures, such as poison pills, golden parachutes, and increases in the amount of debt on the balance sheet of the company, aimed to deter future hostile takeovers and corporate raids. In later years, "activist shareholders," who buy stock holdings in corporations to influence their boards of directors and apply pressure on their management, have adopted various corporate raiding techniques.To learn more about corporate raid visit:https://brainly.com/question/13798855
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Project repat is classified as a(n) ______ because only a few people own shares of its stock.
Project repat is classified as a(n) closed corporation because only a few people own shares of its stock.
What is a closed corporation?This is the term that is used to refer to the types of organizations that are made up of only a few number of shareholders in them. These are the companies that have managers, owners and families and they are not traded in the public for people to invest in.
Hence we can say that :Project repat is classified as a(n) closed corporation because only a few people own shares of its stock.
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The principal-agent problem would not occur if ________ of a firm had complete information about actions of the ________.
The principal-agent problem wouldn't occur if owners of a firm had complete information about actions of the managers.
The principal-agent problem could be a conflict in priorities between someone or group and also the representative authorized to act on their behalf. An agent may act in an exceedingly way that's contrary to the simplest interests of the principal. The principal-agent problem is as varied because the possible roles of principal and agent. It can occur in any situation within which the ownership of an asset, or a principal, delegates direct control over that asset to a different party, or agent. the chance that the agent will act in an exceedingly way that's contrary to the principal’s best interest will be defined as agency costs.
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Why is private property, and the protection of property rights, so critical to the success of the market system and economic growth?
Private property and its protection rights are very important for a market system to work because it enables individuals and businesses to make exchanges in the market.
What is the significance of the property rights?Private property refers to the legal designation for the ownership of property by non-governmental legal entities.
Property rights are the legal ownership that defines how the resources and property can be used. These rights consists of some basic rights such as exclusive right to choose how property will be used, right to exchange with someone else on the basis of mutual agreement etc.
Basically, property rights states the legal rights related the property of an individual.
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An event that has a dual effect on the accounting equation is referred to as a(n)_______
a. direct effect.
b. transaction.
c. investment.
d. indirect effect.
An event that has a dual effect on the accounting equation is referred to as a transaction. Hence, option B is correct.
What is dual effect on the accounting?According to the dual aspect notion, every business transaction has a dual or a two-way impact. This implies that a specific business transaction involves a minimum of two accounts when it is documented in the books of accounts.
This principle is the foundation of the double entry system of accounting. The dual effect principle is the underlying or fundamental accounting idea.
Thus, option B is correct.
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Assume the following sales data for a company: current year $325,000 preceding year 250,000 what is the percentage increase in sales from the preceding year to the current year?
The difference between last year's and this year's sales in percentage 325000-250000=75000/250000*100
=30%
The required details for sales in given paragraph
By sales, what do you mean?
Any exchange of money for tangible or intangible products, services, or assets between two or more persons is referred to as a sale. Other assets may in some situations be given to a seller.
Why are sales crucial?
Sales are crucial in creating consumer loyalty and trust with businesses. Customers choose to promote your business to friends and family and to post positive reviews of your goods and services online mostly because they have faith in you and value your loyalty.
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How much would you have to invest today at 6ompounded annually to have $55,000 available for the purchase of a car at the end of seven years from now?
$36578.14 would be invested today at Compounded annually to have $55,000 available for the purchase of a car at the end of seven years from now
What is the investment?A purchase made only with the intention of creating capital or earnings growth is known as an investment. A person can invest any amount of data that he or she has.
The data that is given in the question is:
The amount = $55,000
Time period = 7 years
rate of return = 6%
The present value of the investment:
Present value = future value / (1+rate of return) x number of years
Putting the value in the above-given formula
Here present value= $55000 / (1+6%) x 7
=$36578.14
The person needs to invest $36578.14.
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What is a reflection of how economic factors are related to psychological influences?
Consumer confidence (and spending) is a reflection of how economic factors are related to psychological influences.
What is Consumer confidence?An economic indicator known as a consumer confidence index is released by numerous organizations across multiple nations. In layman's words, rising consumer confidence denotes economic expansion, which is accompanied by rising consumer expenditure, which denotes more consumption. Consumer confidence is a type of economic indicator that gauges how optimistic people are about both their individual financial conditions and the state of the economy as a whole. An economic indicator is consumer confidence. It evaluates how confident consumers are about the general state of the economy. It also gauges the degree of assurance people have in the steadiness of their income. Their level of confidence affects their financial choices, including their spending behavior.
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A firm is an organization that transforms resources into products. these agents:_____.
A firm is an organization that transforms resources into products. these agents are the primary producing units in a market economy.
What are firms?Firms are organizations in a country that take resources and then put them through productive processes to be able to transform them into products that are either intermediate or final. Either way, these products satisfy the needs and wants of people.
As a result of firms being the ones behind production in an economy, they are the primary producing units that are available in a market economy. This is because firms are private and it is the private entities that produce in a market economy.
Options for this question are:
A. produce these products simply to provide the highest profit possible to their shareholders. B. transform outputs into inputs in order to sell the inputs to other firms, which create products to sell to consumers. c. are only found in product markets. D. are the primary producing units in a market economyFind out more on the importance of firms at https://brainly.com/question/24553900
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If the money supply increases 12 percent, velocity decreases 4 percent, and the price level increases 5 percent, then the change in real gdp must be ______ percent.
The price level increases 5 percent, then the change in real GDP must be 3 percent.
Evaluation :
If the cash supply increases 12 percent, velocity decreases 4 percent, and therefore the price level increases 5 percent, then the change in real GDP must be three percent.change in M + change in V= change in P + change in Y = 12-4= 5 +change in Y
Y = 8 - 5
Y = 3
What is Gross Domestic Product ?The term "Gross Domestic Product," or GDP, refers to the entire monetary worth of all finished goods and services produced (and marketed) within a nation within a specific time period (typically 1 year). Purpose. the foremost often used indicator of economic activity is the GDP.The quantity of all commodities and services produced is multiplied by their prices, and therefore the resulting amount is used to calculate GDP.
How to calculate GDP ?GDP are often calculated using either the total amount of goods and services purchased or the amount of production. Consumption, investment, government, exports, and imports are the various categories of demand.Accordingly, GDP is defined by the subsequent formula:
GDP = Consumption + Investment + Government Spending + Net Exports or
more succinctly as : GDP = C + I + G + NX
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In the marketing mix, which element of the four ps communicates value to the consumer?
a. product
b. price
c. place
d. promotion
The corret option (D) Promotion
What is marketing mix?As part of a comprehensive marketing plan, a marketing mix contains numerous areas of emphasis. The phrase frequently relates to the four Ps: product, price, placement, and promotion, which were originally used to classify things.Effective marketing covers a wide range of issues rather than concentrating primarily on one theme.
As a result, it is simpler to engage a larger audience, and by keeping in mind the four Ps, marketing professionals are better equipped to focus on what matters most. By focusing on the marketing mix, businesses can make more strategic choices when introducing new items or changing existing ones.
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If 20,000 units are produced by a particular manufacturer, fixed costs are $16 per unit. therefore, when 40,000 units are produced fixed costs will:__________
If 20,000 units are produced by a particular manufacturer, fixed costs are $16 per unit. therefore, when 40,000 units are produced fixed costs will decrease to $8 per unit.
Fixed costs are the expenses which do not change with the production level. They remain constant per period.
Determining the fixed cost per unit is done by dividing the total units produced by the total fixed costs. According to the economies of scale theory, the larger the output, the lower the cost of fixed cost per unit will be. The reason behind this is that the fixed cost amount will be spread among a large volume of production.
In this case, at 20,000 units, the fixed cost per unit is $16,
An increase in production to 40,000 units is a 100 percent increase. The fixed cost per unit will decrease by 100 percent. Fixed costs will be divided among more units at the double of the original rate.
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The focal point for audit procedures are the key questions that must be answered about management's ______.
The focal issue for audit procedures is the key queries that must be answered about administration's financial statement assertions.
What are the economic statement assertions for the balance sheet?There are four types of account balance assertions: Existence: The support, equity balances, and liabilities exist at the period ending time. Completeness: The assets, equity credits, and liabilities that are completed and considered to be recorded have been recognized in the financial statements. Assertions are the group of representations by a management team that was incorporated into the financial reports.
They are accuracy and valuation, existence, wholeness, rights and obligations, and display and disclosure.
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The basis of strategic position through serving few needs of many customers is known as:_______
The basis of a strategic position by serving only a few needs of many customers is known as strategy.
The creation of a unique & valuable position is called strategy. This strategic position can be created through three sources. The first one is a few needs, many customers. the second one is by having broad needs and few customers and the third one is by having broad needs, and many customers.
Strategy requires a type of competing for the strategic position known as Trade-Offs competing. This requires the company to focus only on a few compatible strategies. With this method, the company will not follow more general strategies but focus its attention only on a specific strategy. So the company will try to implement a system that is independent and reinforces each of its activities.
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It is important to provide the decision maker more information than he or she can process. True or false
The decision-maker should be given more information than they can handle. false
A decision maker is the individual or group in charge of selecting the best course of action given the restrictions of time, the resources at hand, the type and quantity of information at hand, and the number of interested parties.
The cognitive process that leads to the selection of a belief or a plan of action from a variety of potential alternative possibilities is known as decision-making (also spelled decision-making and decision-making). It might be both unreasonable and rational. Each decision-making process results in a final choice, which may or may not lead to action. The reasoning process is founded on the decision-assumptions maker's about values, preferences, and beliefs.
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Select all the correct answers. which two sentences describe characteristics of a partnership? the owners are free from personal liability. the owners pool their resources to raise capital. the owners in a partnership are called members. the business benefits because owners can share responsibilities.
The two sentences that describe the characteristics of a partnership are:
the owners pool their resources to raise capital.
the business benefits because owners can share responsibilities.
A partnership is a group of two or more persons who work together to conduct business or engage in commerce. Each individual provides something—cash, goods, labor, or skills and shares in the company's gains and losses.
An official written document outlining the type of partnership and the specifics of the arrangement, signed by all parties, is typically used to confirm a business partnership. A business partnership typically starts with a verbal agreement between the business partners to form a new business or share an existing business
The five characteristics of partnership are:
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How should direct combination costs and amounts incurred to register and issue stock in connection with a business combination be accounted for in a pre-2009 business combination?
Stock issuance expenses and the Investment will be a direct combination of costs and amounts incurred to register and issue stock in connection with a business combination to be accounted for in a pre-2009 business combination.
What is the cost?The cost can be defined as the price that the buyer and the seller agree upon on a particular object or service is called cost.
Investment expenditures and quantities expended to establish as well as particular legislative in conjunction with the buyout to be recorded with Investment is increased by direct pairing expenses, but APIC is decreased by stock issuance expenses.
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________ is an approach in an economy where the government decides what goods are produced, how much is produced, and sets the price of the goods produced.
Command allocation is an approach in an economy where the government decides what goods are produced, how much is produced, and sets the price of the goods produced.
What is Command economy?
Governments control when, where, and how much is produced in a command economy since they own the resources, capital, and land that are used in production. In a market economy, resource allocation is determined by individual and corporate earnings and losses, as opposed to macroeconomic and political factors in a command economy. Giving all members access to opportunities and necessities is a priority in command economies. The former Soviet Union, which ran on a communist regime, is the most well-known instance of a command economy.A command economy enables a country to allocate resources to priorities that the free market would not be able to fully address.To know more about Command economy visit:
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The market for coffee has many suppliers from all over the world. brazil is a major supplier to the market. how would the following developments influence the equilibrium price and quantity of coffee?
The market for coffee was estimated to be worth USD 102.02 billion in 2020, and it is anticipated to grow at a CAGR of 4.28% from 2021 to 2026.
Coffee is one of the world's most popular alcoholic beverages and the second-largest commercial good after petroleum (Mussatto, Machado, Martins, Teixeira, & Technology, 2011). It is genuinely a global commodity and generates significant foreign exchange for many of the producing nations (Ponte, 2002). While industrialized countries have the largest market, developing nations are the primary producers of coffee. Almost all coffee-producing nations typically have both large- and small-scale coffee farming.
Coffee demand and supply have historically been impacted by a number of factors that have been tracked via various research by numerous academics.
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Of the various methods of capital budgeting, which one is considered to be the superior method to analyze a project or investment?
Of the various methods of capital budgeting, the Net present value (NPV) method is considered to be the superior method to analyze a project or investment.
What is capital budgeting?The planning process known as capital budgeting and investment appraisal in corporate finance is used to assess whether an organization's long-term investments, such as new machinery, replacement of existing machinery, new plants, new products, and research and development projects, are worthwhile to fund with cash through the firm's capitalization structures (debt, equity or retained earnings). It involves deciding how much money to set aside for important capital, or investment, expenses. Increasing the firm's value to the shareholders is one of the overarching objectives, in line with the general approach in corporate finance.
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A product’s value depends both on its utility and its scarcity.
True or false
Answer:
true
Explanation:
Both bananas and apples cost $1/each. paul is deciding how many apples and bananas to purchase for $100. after careful deliberation, he decides to buy 100 apples and 0 bananas. this is an example of:_________
An illustration of a corner solution is this.
When one of the inputs in the maximized function has a quantity of zero, the agent maximization problem has a corner solution that is a distinct solution. It is a concept of Consumer Theory. A corner solution, to put it simply, is when the decision-maker is unable or unwilling to trade off between numerous possibilities. In a corner solution, none of the items are included in the optimum package. constraints on consumer choice. If there is an inside solution, the indifference curve corresponds to the budget constraint at the best bundle.
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