Answer:
One of the great dangers in allocating common fixed corporate costs is that such allocations can make a product line look less profitable than it really is.
Explanation:
Therefore, care must be exercised so that a product line is not eliminated because the common fixed costs have been allocated to it such that it becomes unprofitable. This is why it is necessary to identify activity cost pools into which such fixed costs can be accumulated and from which they can be allocated to product lines. Using ABC costing approach, for instance, offers a means of escape because the system tries to allocate costs based on the level of usage or consumption of such common costs by each product line instead of using arbitrary allocation formulas.
Answer:
A).The franchisor provides a tried and tested product to sell
C ). The franchisee receives ongoing help and support from the franchisor
Explanation:
A franchise is an arrangement where an established and successful business person( franchisor) licenses a third party( franchisee) to set up an independent branch similar to the franchisor business. The franchisor permits the franchisee to use their brand name, colors, processes, and procedures and sell their products. Therefore, the franchisee's branch will be similar in all aspects to the other franchisor's branches.
The franchisor provides technical, operational, and managerial support to the franchisee. The franchisee pays an initial fee and a percentage of monthly sales to the franchisor to open a franchise business.
Answer:
$315,198
Explanation:
WACC = [ Equity / Total value ] * cost of equity + [ Debt / Total value ] * Cost of debt.
WACC = 11.5%
Exit multiple = Total cash outflow / Total cash inflow
Exit multiple = $120,000 / 36,000 = 3.3x
EBITDA of the company is $178,412.
Answer:
200 units
Explanation:
For computing the number of units produced each time we need to applied the economic order quantity formula which is shown below:
where,
Annual demand is 1,600 units
Ordering cost per order is $25
And, the carrying cost or holding cost per unit per year is $2
Now placing these values to the above formula
So, the economic order quantity is
= 200 units
Answer:
a road map for the marketing activities of an organization for a specified future time period, such as one year or five years.
Explanation:
A business objective is defined as measurable achievements a company wants to attain within a given period of time.
It acts as a compass that shows that activities are on track to realise business goals.
The steps to get a favourable result are outlined, resources to be used are usually stated and a time frame given to get results.
Goals on the other hand are general results that a company wants to attain. Objectives are more specific.
