The balance sheet connects to income statements, in turn also connected to cash flow statement. Occurrences or a change to the net cash activities of the cash flow statement affects the balance sheet. The balance sheet is useful when estimating the potential of the organization in order for them to achieve there long-term mission. However, cash flow statement displays the exchange of currency among an organization and external agents. For example, the cash flow can be affected when the company purchases products, and if the costs of the products are an outstanding amount in turn it will affect the assets on the balance sheet.
An important tool in predicting the volume of activity, the costs to be incurred, the sales to be earned, and the profit to be received is: A. Target income analysis. B. Cost-volume-profit analysis. C. Least-squares regression of costs. D. Variance analysis.
| | | d) | Determine and evaluate possible courses of action. | Question 3 | | 0 / 1 point | Which of the following will always be a relevant cost? | | a) | Opportunity cost | | | b) | Fixed cost | | | c) | Sunk cost | | | d) | Variable cost | Question 4 | | 0 / 1 point | Costs that will differ between alternatives and influence the outcome of a decision are | | a) | product costs. | | | b) | sunk costs. | | | c) | unavoidable costs.
Supply and Demand Simulation Amanda Huenefeld ECO/365 Sadu Shetty January, 14, 2013 Introduction Supply and demand are the two influences that govern pricing in the larger picture of a viable economic market. The two factors are like two forces. Equally the conclusive levels of supply and demand, and the comparative levels of the two in contrast to one another, are significant. The standard of supply and demand is that if one or both varies, there will be a transient difference in the amount of product manufacturers are equipped to sell and the quantity that consumers are willing to buy. This difference will cause the market price to increase or decrease when necessary until the quantities are the same.
Once the strategic plan is implemented into the development of the organization, a financial plan can be developed to gain capital for organizational growth. A financial problem, which can be encountered by an organization when implementing a strategic plan, is the lack of capital to put the plans in motion. If the organization does not have the financial ability to back its strategic plan, both plans will not be successful. DQ#2: What information is needed to prepare a cash budget? What is the relationship between an operating and a cash budget?
because the Emission and the cost of emission allowances have indetermination lives and inherent in a continuing business , the emission allowance is recognized as expense when incurred. In conclusion: If the emission allowance is recognized as expense when incurred , expense is noncash item, it is reconciled net income in the operating activities so that the
It distinguishes between fixed and variable costs in this way the budget can be adjusted automatically to a particular activity. The flexible budget is an excellent control tool because it is geared towards a range of activities rather than a single level of activity. By using the flexible budget formula, a series of budgets can be developed for various levels of activities. The following steps need to be followed by management in order to build a flexible budget: 1) estimate the range of expected activity for a given period, 2) analyze cost behavior trends, whether fixed, variable, or mixed, 3) separate costs by behavior, that is, breakup mixed costs into variable and fixed, and finally,
1. Provide the definitions of throughput, inventory and operational expense given in The Goal. How do they compare with the traditional definitions? Do you find them useful, and why? Throughput is the rate at which the system generates money through sales while inventory is all the money that the system has invested in purchasing things which it intends to sell.
Finally, we have seen how these incentives affect different types of organizations. We have seen cases where companies move for reasons that other may consider small like consultation, or travel. While others move because of additional material benefits, such as lower labor, and shipping costs. Because of the importance of this decision an organization should study the different types of incentives and chose the most beneficial to their
Distinguish between a Change in Supply and a Change in Quantity Supplied. List and explain the factors that will shift a supply curve. Use demand and supply curves to determine the equilibrium price and quantity of a good. Use demand and supply curves to show the effect changes in supply and/or demand have on the price and quantity of a good. • Define Price