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Evgesh-ka [11]
3 years ago
13

Asset utilization ratios

Business
1 answer:
Igoryamba3 years ago
8 0

Answer:

a. relate balance sheet assets to income statement sales.

Explanation:

Asset utilization ratio measures the ability of a firm to generate revenue from each dollar of assets that it holds. It is computed using the following formula:

Asset Utilization = Revenue / Average Total Assets

Revenue is an income statement account, while average total assets is a balance sheet account, thus, the answer is a.

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Camino’s cost of goods sold and operating expenses are 80 percent variable and 20 percent fixed. Camino has received an offer fr
aniked [119]

Answer: -$140000

Explanation:

Total operating expenses, = fixed costs + variable cost

Fixed cost is 20% = $60000

Variable cost is 80%

Therefore Total Operating expenses is $300000

When we subtract the total operating expenses (300000) from the total revenue (160000) , we get -140000.

Camino's is having a net operating loss of $140000. To make profit, they need to sell above 37500 cups

7 0
3 years ago
What can organizations do to keep rewards individualized enough to meet various employee needs (needs theory) while trying to en
julsineya [31]

Answer:

The best way to go about this is to design and operate and rewards system that recognizes individual needs as summarized and proposed by David McClelland.

The theory of equity on the other hand speaks to the perception of how input is compensated for in relation to those of others. Human beings (workers) will come with varying degrees of skills and input.

So to customize rewards in such a way that it recognizes unique contributions in an equitable way, one must first decide what key skills will be required for each job and which jobs are required to achieve organizational goals and objectives.

Explanation:

The Needs Theory by David Mclelland summarizes individual needs into three. They are:

  1. Achievement
  2. Affiliation
  3. Power

A balanced reward system will have financial and non-financial benefits. some of the non-financial benefits will be tailored to have the above components.

- Achievement: An example of this is - Opportunity for higher assignments

- Affiliation: The need to belong to a strong Employer brand

- Power: This answers the question about whether or not one will become more influential as they progress with the company

The equity theory will guide the business owner in ensuring that all selected metrics of input are classed and priced accordingly.

The usual form of input include but are not limited to:

  • Ability
  • Adaptability
  • Commitment
  • Determination
  • Education
  • Effort
  • Enthusiasm
  • Experience
  • Flexibility
  • Hard Work
  • Loyalty
  • Personal sacrifice
  • Skill
  • Support from co-workers and colleagues
  • Time
  • Tolerance
  • Trust in supervisors

Equity sometimes is difficult to achieve due to issues with capacity on the part of the company. Best practice, however, is to recognize equity first from the perspective of standard industry practice, then match or exceed such offering by a combination of Financial and Non-Financial rewards that are based on the strength of the organization.

Another strategy is for organizations to adapt it's reward systems to  Achievement Based Compensation. This type of compensation instead of focusing on the inputs listed above focuses on results.

In this case, expected results and capacity to deliver and subsequent rewards on same are discussed and agreed upon.

Minimum requirements are also defined ahead of time. Under this kind of structure, equity is achieved, and individual needs are recognized.

Cheers

4 0
2 years ago
Under the gold standard the fixed price of gold was $20.67 per ounce in the United States. The fixed price of gold was £4.2474 p
madam [21]
The answer of the question is b
6 0
3 years ago
Which of the following describes one of the ways that the demographics of an area affect the price of housing in that area?
jeka94

Answer:

An area with younger people will have a higher demand for rentals and a lower demand for buying.

7 0
3 years ago
Read 2 more answers
When reviewing the balance sheet for Portable Pet Care, Inc., a mobile small animal care business, Ricky noted the following inf
mash [69]

Answer:

The net worth (owners' equity) for this business is $2.2 million

Explanation:

Net worth: It is also known as owner's equity which is a difference between total assets and total assets.

In this question, we use the accounting equation which is used to balance the debit and credit side of the balance sheet items.

So, the accounting equation is

Total Assets = Total Liabilities + Owner's Equity

where,

Company assets are $3.5 million

And, liabilities is $1.3 million

Now, apply the above equation to find out the value of the owner's equity

So, owner equity would be equals to

= $3.5 million - $1.3 million

= $2.2 million

Hence,  the net worth (owners' equity) for this business is $2.2 million

3 0
3 years ago
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