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2 years ago

True or false: in situations where an annual budget deficit exists, cutting expenses from the budget is optimal.

1 answer:

5 0

The statement in situations where an annual budget deficit exists, cutting expenses from the budget is optimal is True.

<h3>What is budget deficit?</h3>

Budget deficit tend to occur when the expenses or expenditure is higher then the revenue.

Cutting down expenses from the budget is most desirable if we want to have budget surplus. Budget surplus is when revenue is higher than expenditure.

Therefore the statement in situations where an annual budget deficit exists, cutting expenses from the budget is optimal is True.

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Furnco sells secretarial chairs. Annual demand is normally distributed, with mean of 1,040 chairs and standard deviation of 50.9

kaheart [24]

Answer:

Reorder point is 40

Explanation:

Reorder point is the level of inventory which trigger the purchase of new inventory.

The formula for Reorder point is

Annual demand * Leadtime + Safety Stock

Reorder Point = 1040 / 365 * 14 days + 0

= 40.

The lost sales cost is $50 in goodwill, Furnco should keep a safety stock of at least 30 chairs in order to meet demand level.

7 0

3 years ago

When developing marketing plans, what should a firm consider about their competition?.

nasty-shy [4]

When a company develops marketing plans, it must consider the weaknesses and reactions of competitors, so that it can identify the action necessary to maintain the company's competitive advantage.

<h3 /><h3>Marketing Plans</h3>

Corresponds to a document that details all the course of action of a company to achieve its marketing objectives, which are related to generating value for its products and services and positioning for the organization.

Therefore, the analysis of the external environment, such as the economy and competitors must be considered, so that the company can identify strategies to carry out the best decision making and maintain the flow of its activities as planned.

Find out more information about marketing plan here:

brainly.com/question/9027729

6 0

2 years ago

Plutonic Inc. had $400 million in taxable income for the current year. Plutonic also had an increase in deferred tax liabilities

Sergeu [11.5K]

Answer:

Increase of 130 million

Explanation:

In this question, we are looking to evaluate what has happened to change in deferred tax assets. We proceed as follows;

Firstly, we calculate the current tax.

Mathematically = 40% of 400 million = 40/100 * 400 million = 160 million

Now, as we can see in the question, a decrease in deferred tax asset resulted in an increase in tax expense to a tune of $50 million

This brings the total tax expense to 160 million + 50 million = 210 million

We can see from the question that the company has only recognized a tax expense of $80 million.

This means that the change in deferred tax asset was an increase of 210 million- 80 million = $130 million

8 0

3 years ago

Suppose we are a distributor that uses safety stock and a reorder point for inventory management. If we can find a more consiste

Ulleksa [173]

Answer:

The answer is False. By cutting the variance of the demand during lead time to 1/2 its original value while maintaining the same lead times, the new safety stock will also drop to 1/2 its original value.

Explanation:

Safety stock is a form of inventory management that provides an additional unit of an item held as a buffer i order to mitigate risk of running out of stock.

A reorder point provides a buffer of time to restock items when stock is running out. It helps to reduce operational costs and chaos that may arise such as rush fees owed to suppliers. It makes the use of a warehouse space more efficient.

Suppose we are a distributor that uses safety stock and a reorder point for inventory management. If we can find a more consistent manufacturer that will maintain the same mean lead times while cutting the variance of the demand during lead time to 1/2 its original value, the new safety stock that we need to carry to achieve the same service level will also drop to 1/2 its original value.

6 0

3 years ago

Varmit-B-Gone is a pest control service that operates in a suburban neighborhood. The company attempts to make service calls at

lubasha [3.4K]

Answer:

VARMIT B-GONE

BUDGETED INCOME STATEMENT

sales revenue ( 90%*1500*2.4*80%*$80) $207,360

Service cost :

variable cost $17280

Maintenance and repair 15,998

Depreciation <u> 42,000</u> <u> 75,278</u>

Gross profit 132,082

marketing and administrative cost :

Marketing (variable ) 10,440

administrative (fixed)(55,000*105%) 57,750

bad debt( 2%*207360) <u> 4,147 </u> <u> 72,337</u>

net income <u> 59,745</u>

Explanation:

service cost :

variable cost = (24,000/3600)*2592 = $17,280

maintenance and repairs = (22,000/3600)*2592 *101% = $15,998

Marketing cost = ($14,500/3600)*2592 = $10,440

7 0

3 years ago