Answer:
c) relatively high variable costs
Explanation:
Operating leverage is a ratio that is used to analyze and understand the cost structure of a business. It gives the relation between the variable and fixed cost to the the total cost of running the business.
A business with a large amount of fixed cost relative to variable is said to have a high operating leverage . For such business, operating income would be more volatile because the operating income would not increase in commensurate proportion as sales revenue.
And a company with low operating leverage has low amount of fixed cost relative to variable cost and therefore a relatively high variable costs
Operating leverage is calculated as
Contribution /Earnings before interest and Tax
Answer:
1. The GDP is the total of all value added created in an economy. The value added means the value of goods and services that have been produced minus the value of the goods and services needed to produce them, the so called intermediate consumption.
2. 20.94 trillion USD (2020)
3. 14.72 trillion USD (2020)
Cash flow accessible Catering Corp. reported $8 million in free cash flows for 2013 and a $2 million investment in operating capital.
What exactly is free cash flow?
In corporate finance, free cash flow or free cash flow to the firm is the amount by which a company's operating cash flow exceeds its demands for working capital and fixed asset expenditures. The cash generated by a company after deducting cash outflows for operating expenses and capital asset upkeep is referred to as free cash flow (FCF).
To learn more about free cash flow
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The code sets up guidelines for inspector autonomy, respectability and objectivity, obligations to customers and partners and acts discreditable to the bookkeeping calling. The AICPA is liable for drafting, updating and reissuing the code yearly, on June 1
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Explanation: </u>
The AICPA Code of Conduct depends on six standards namely,
- obligations
- serve the general population intrigue
- uprightness
- objectivity and freedom
- due care and
- degree and nature of administrations.
These standards are required practices for all guaranteed open bookkeepers who are individuals from the AICPA. The standards are the necessary conduct for bookkeepers and lay the basis for explicit principles of bookkeeping.
"The Principles of the Code… express the calling's acknowledgment of its duties to the general population, to customers, and to partners. They manage individuals in the presentation of their expert obligations and express the fundamental precepts of moral and expert direct. The Principles require an unswerving responsibility to fair conduct, even at the penance of individual bit of leeway." (Duska, Duska and Ragatz, 2011, pg. 80)
The nature and motivation behind the Code of Conduct is to give direction to bookkeeping experts in the lead of their expert issues. These standards were intended to give the calculated structure to explicit bookkeeping decides that all AICPA individuals must follow in their course of business. Bookkeepers have a moral duty to three principle gatherings; people in general, their customers, and partners.
The execution of the code begins with conduct. Bookkeepers must be eager to change their conduct to address the issues of these standards for the code to work appropriately. Responsibility – Accountants have an obligation to utilize proficient and moral judgement in all their activities. Serve people in general intrigue – Accountants must act such that serves the general population intrigue.
