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krek1111 [17]
1 year ago
13

the best reason for investing company resources in vertical integration (either forward or backward) is to

Business
1 answer:
anygoal [31]1 year ago
5 0

The greatest justification for firm resources being committed to vertical integration (either forward or backward) is to add considerably to a company's technological capabilities, strengthen the company's competitive position, and/or increase its profitability.

A family of financial indicators known as profitability ratios is used to evaluate a company's potential to create profits over time in relation to its revenue, operational expenses, balance sheet assets, or shareholders' equity using information from a particular point in time. Efficiency ratios, which take into account how successfully a company uses its resources internally to generate income, can be contrasted to profitability ratios (as opposed to after-cost profits). Most profitability ratios show the company's performance by showing a higher value as compared to that of a competitor or to the same ratio from a prior period. The most insightful comparisons of profitability ratios are those made with comparable businesses, the company's own past, or industry averages.

Learn more about profitability here

brainly.com/question/15036999

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Two​ firms, A and B​, must each choose either a low price or a high price for their product. The payoff matrix shows the profit
ahrayia [7]

Answer: 1. A.Both firms will choose the low price.

2. B. Both firms would choose the high price.

Explanation:

1. If the firms cannot cooperate with each other and must choose simultaneously, both firms will choose the low price.

This is because at the low price both of them are at the highest profit they can make when they are not cooperating. For instance, if Firm B chooses Low Price and Firm A chooses High Price, Firm A will make $3 million while Firm be will make $8 million.

If Firm B decides to have a high price then firm A will take the low price and make $8 million in profit while Firm B makes $4 million. If they are not working together, they will both have to take the low price to make the most profit.

2. If the firms could cooperate with each​ other, both firms would choose the high price.

The is because they will be making more than competing and getting a lower profit. Should they cooperate they will each get $7 million in profit because they will pick the option they can both make the highest profit at. The is better than competing and making only $5 and $6 million respectively.

If you need any clarification do comment. Cheers.

4 0
2 years ago
What are 3 benefits of adding non-QuickBooks Online clients to your Client List in QuickBooks Online Accountant
kipiarov [429]

Answer:

The answer is below

Explanation:

There are quite some benefits of adding non-QuickBooks Online clients to your Client List in QuickBooks Online Accountant, in which three amongst them are:

1. It gives the opportunity to keep all the clients' data, including documents in a specific place together

2. It gives the user a chance to easily transfer to clients, the saved documents in QuickBooks Online Accountant

3. A user can easily create projects and tasks for non-QuickBooks Online clients in the work tab in order to meet some crucial clients deadlines.

3 0
3 years ago
Bezos invited everyone to sell their items on Amazon.
Phoenix [80]

Answer:why

Explanation:

Why

8 0
3 years ago
What is the result of strong, effective, market-supporting formal institutions?
PSYCHO15rus [73]
<span>The result of a strong, effective, market supporting formal institution is a developed economy. A developed economy can be found in a developed and industrialized country. It will be a sovereign state that is highly developed in technology and infrastructure.</span>
6 0
3 years ago
Humphries Construction Company builds warehouses that range in size from 12,000 to 100,000 square feet. Which of the following w
elixir [45]

Answer:

The Number of warehouses completed would not be a rational base for allocating overhead costs to the warehouses.

Explanation:

For allocating the overhead cost to the warehouse. Following things need to be considered.

1. Square footage of the warehouses : Based on the square foot of the warehouse, the overhead cost can be easily allocated. As different warehouses have different square foot. So there would be different allocation criteria for each warehouse.

2. Labor Hours : According to the labor hours, the overhead expense can be allocated. In warehouse, the size of labor is matter. As more labors are available, the chances of more allocation expenses would be there and if there is less labors so the allocation expenses would be less.  

Depending upon the size of the labors, the allocation of overhead differs.

3. Direct material cost : The warehouse is required when more supplies of material is to be required. So here, direct material plays an very important role while allocating the overhead cost. Depending upon the quantity of  material, the overhead expenses differs.

4. Number of warehouses completed : As without knowing the size and capacity of the warehouses, it is difficult to allocate the overhead expense. Moreover, the same cost is been allocated which is not acceptable.

Hence, the Number of warehouses completed would not be a rational base for allocating overhead costs to the warehouses.

7 0
3 years ago
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