Answer:
A. Customer value = customer benefits - customer cost
Explanation:
The customer value is the worth of a product or a service as compared to other alternatives in the standpoint of a customer.
It is basically like the worth of obtaining a product or a service is to a customer. Customer value can be considered how a customer benefits from the product minus the cost of obtaining the product.
Benefits and cost does not always have to be in the form of cash. A benefit can be in the form of quality, value, experience and cost can be in terms of time, effort, or energy.
Answer:
Option D. $6.25 Million
Explanation:
The Free Cash Flow can be calculated using the following formula (Ignoring investment):
Free Cash Flow = (Revenue - Operating Expenses) Minus Tax
Here
Revenue is $20 Million
Operating Expenses are $12 Million
And
Tax is not given however tax rate is given which is 35% here. For tax purposes, we will assume that the depreciation is tax allowable expense, so
Tax = (Revenue - Operating Expenses - Depreciation) * Tax rate
By putting values we have:
Tax = ($20m - $12m - $3m) = $1.75 Million
The cash impact is taken while calculating the Free cash flow. This free cash flow method is also used in IRR, NPV, discounted payback method, etc.
By putting values in the above bold equation, we have:
Free Cash Flow = ($20m - $12m) - $1.75 = $6.25 Million
Planning is the components of the performance management cycle involves gaining an in-depth understanding of a team or an organization's goals, the role of the followers in the goal accomplishment, and the context in which the followers operate.
<h3>What is business planning?</h3>
This is the term that is used to ref rto all of the ways that is used to put up the overall functioning of a business.
This is the way of getting the roles that are to be played in the ways that they should be carried out and all of the ways that would be used to put the components of the business together.
Business planning is a very serious component of the business because it helps to ensure that the business would turn out to be successful.
Read more on planning here:
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Answer: decrease government spending
Explanation:
Since government spending leads to employment generation and business activity which in turn increases incomes and spending. A decrease in government spending will keep demand and consequently inflation in check.
Answer:
The anticipated collections for August are $1024800
Explanation:
Based on the past experience part, the cash inflows for August will include 8% of June's sales collection, 20% of July's sales collection and 70% of August's sales collection.
Thus, the anticipated collection for August will be:
- 8% of June' sales = 854000 * 0.08 = 68320
- 20% of July's sales = 1195600 * 0.2 = 239120
- 70% of August sales = 1024800 * 0.7 = 717360
Total anticipated collection-August = 68320 + 239120 + 717360 = $1024800