By following the matching principle all of the costs associated with a particular product, not just its wholesale price, is expensed when the item is sold. Requirement 2 - A Generally, the lower of cost or market method is used to value inventory in order to “avoid reporting inventory at an amount greater than the benefits it can provide” (Spiceland, Sepe, & Nelson, 2013, p. 476). According to Spiceland, Sepe, and Nelson (2013) the “change in replacement cost usually is a good indicator of the direction of change in selling price” (p. 477). When the change in replacement cost is negative the LCM method allows companies to apply the conservatism principle. The conservatism principle involves “recognizing expenses and liabilities as soon as possible when there is uncertainty about the outcome, but to only recognize revenues and assets when they are assured of being received” (The conservatism principle).
Chapter 9 Required 1. Review the earnings per share forecasts. Comment on how these forecasts could influence the market value of the common stock. 2. What is the price/earnings ratio for your company? 3.
This is the internal identification number which the employer gives employee. Salary This is the amount the employee has earned before any deductions have been made. The employer may break this down into components if the employee has done overtime or receive a bonus or commission. This will show how much the employee has earned in wages before any deductions are made. It might also show how the employee pay was calculated, for example; the employee hourly rate and the number of hours worked.
That is what makes the company so compliant with the debt that they owe. “ Duke Energy is in compliance with all covenants related to its debt agreements.” (Duke Energy corp., 2010) This can be a very good thing, that way the company has time to pay off debt and not earn more then what they already have. Ratios are used so that companies are able to meet short-term debt. Current ratios and quick ratios are liquidity ratios that help signal complications. Current ratios show relative amount of working capital, while quick ratios show the amount of quick assets by current liabilities.
Explain how it works. Answer: A method of estimating the price elasticity of demand by observing the change in total revenue that results from a change in the price, when all other influences
Profit margins are found by dividing net income by net sales. Huffing Trucking’s return on assets was 2.2%. This was calculated by dividing net income by the average assets and gives a general measurement
Which is the MOST commonly used measure of corporate performance (in terms of profit)? • ROE • ROI • EPS • DPS 4. When a company determines a competency's competitive advantage, Barney refers to this issue as • value • rareness • imitability • organization Final Exam Answers just a click away MGT 498 Final Exam 5. If performance data and activity reports indicate undesirable performance as a result of inappropriate use of the strategic management process, operational managers must • change the strategic management model. • know about it so that they can correct the employee activity.
Unit 2: Business Resources P6- Controlling costs Introduction- the relationship between costs, revenue and profit. The importance of and the for controlling costs Costs- type of Financial techniques available in controlling costs Break even analysis (CPV) Cash flow forecast Budgeting and budgetary control Conclusion TR- TC= Net profit/ loss Cost must be controlled by all businesses no matter the size of the business even if it’s small or large. As there is a clear relationship between cost and revenue and results would have an impact on the profit within the business. When the cost increased the profit would decrease, as the business would have to pay more whereas less profit will be left. On the other hand if the cost is decreasing it would have positive impact on the profit as the profit will increase.
10. Question: (TCO 2) Action Corporation uses activity-based costing to apply overhead to jobs within a job-order costing system. The following overhead activities were budgeted for the year. ACCT 344 Week 2 Quiz 1. Question: (TCO 3) The appropriate cost accounting system to use when inventory items are produced on an assembly line is 2.
The organization may use the information in the cash flow report to assess the effectiveness of operations. Cash flow from funding activities. The cash flow statement is one of the most important, but often overlooked, of a firm’s financial statements. In its entirety, it lets an individual whether he or she is an analyst, customer, credit provider, or auditor learn the sources and uses of a firm’s cash. Without proper cash management and regardless of how fast a firm’s sales or reported profits on the income statement are growing, a firm cannot survive without carefully ensuring that it takes in more cash than it sends out the door.