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2 years ago

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

1 answer:

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

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Managerial accounting is governed by generally accepted accounting principles (gaap). a. true b. false

diamong [38]

This is a False Statement.

Generally Accepted Accounting Principles (GAAP) need not be followed by managerial accountants when preparing management reports.

Specifically, management accounting aims to

provide Information for internal Organisation managers

providing details to governmental regulating bodies

Information for shareholders, the accounts payable department, and other parties outside the company

information to shareholders, accounts payables, and other parties outside the company, as well as information to management inside the firm.

To Learn more about Management Accounting, Click the links.

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3 0

2 years ago

Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation wholesales repair products to equipm

Masja [62]

Answer and Explanation:

The Journal entry is shown below:-

a. Cash Dr, $20,811,010

To Bonds payable $20,000,000

To Premium on Bonds payable $811,010

(Being issuance of the bond is recorded)

For recording this we debited the cash as it increased the assets and at the same time it also increased the liabilities so the bond payable and premium is credited

b. Interest expenses Dr, $818,899

Premium on Bonds payable $81,101 ($811,010 ÷ 5 × 6 ÷ 12 )

To Cash $900,000 ($20,000,000 × 9% × 6 ÷ 12)

(Being interest expense is recorded)

For recording this we debited the interest expense as it increased the expenses and credited the cash as it reduced the assets plus the remaining balance is debited to premium on bond payable

c.The contract rate of interest is higher than market rate of interest.

5 0

3 years ago

An independent firm that offers connections and Electronic Data Interchange (EDI) transaction forwarding services to buyers and

weeeeeb [17]

Answer:

Value Added Network

Explanation:

Value Added Network -

It is the service , which is provided by some private firm , so that the company have a secure way to share the data , is referred to as value added network , VAN .

It is the most common method for the movement of the electronic data interchange ( EDI ) , in between two firm or companies .

Hence, from the given information of the question,

The correct term is Value Added Network VAN.

3 0

3 years ago

The manager of the manufacturing unit of a company is responsible for the costs of the manufacturing unit. The president is in t

trasher [3.6K]

Answer:

AC Problems : Incurred even at 0 output level, much varying & deviant from cash flows

VC Problems : Doesn't include fixed cost, incomplete expenditure, incomplete financial (accounting) statements.

Explanation:

Average Cost is the cost per unit off output.

Problems with AC as a performance measure :

It includes all (fixed & variable cost) average. So, including fixed cost, it is not zero even at zero output level.
It's variance analysis during production & cost phases is very complicated.
It's result are deviant as evident from cash flows.

Variable Cost is the cost incurred on variable factors of production.

Problems with VC as a performance measure :

It doesn't include fixed cost. So, it is not a correct measure of complete total expenditure.
Fixed costs are huge. No financial inclusion of them makes accounting information unreliable (for legal purposes)

6 0

3 years ago

A document format is : ap3x

AlladinOne [14]

Answer:is D

Explanation:

The shape,size,design,and arrangement of its physical elements

5 0

3 years ago