This accusation is incorrect.
Answer:
1) YoSan Inc.
Income Statement
For the month ended July 31, 202x
Sales revenue $2,150,000
<u>- Cost of goods sold $1,520,000</u>
Gross profit $630,000
<u>- S & A expenses $300,000</u>
Operating profit $330,000
2) YoSan Inc.
Income Statement
For the month ended July 31, 202x
Sales revenue $2,150,000
- Variable costs:
- Direct materials $800,000
- Direct labor $350,000
- Variable manufacturing cost $130,000
- Variable S & A expenses $170,000 <u>$1,450,000 </u>
Contribution margin $700,000
- Period costs:
- Fixed manufacturing cost $288,000
- Fixed S & A expenses $96,000 <u> $384,000 </u>
Operating profit $316,000
3) When you prepare a variable costing income statement, the ending inventory of finished goods and WIP only includes variables costs. All fixed or period expenses are included during the period that they occur and are not carried over to the next period. I.e. the ending inventory (400 units) for next month will be lower under variable costing.
Answer:
The best illustration of a firm adhering to the goal of financial management is:
b. Decrease in the per-unit production costs
Explanation:
Financial management is the process by which a firm plans, controls and monitors their financial resources to ensure that the cost is minimized, while at the same time maximizing their profit. Since financial resources is the fuel that drives a business, its usage has to be managed to ensure short-term and long-term financial success. This is done by increasing the value creating efficiency with very minimal financial resources. To achieve the goal of financial management, various strategies have to be applied to achieve this goal. They include;
1. Financial planning: good financial management indicates that a firm needs have prior information on how their business operates. With this information, the financial managers can therefor plan for the future. Each firm has it's organizational and operational financial needs. These needs if known earlier, a financial plan can be drafted and implemented to adequately meet these needs.
2. Budgeting: this is a tool that can be used to know how much a firm is willing to spend in terms of cost. Budgets are usually broken down into categories in order to know which sectors utilize the highest amount of financial resources to minimize wastage.
3. Risk management: a firm needs to first assess sources and levels of risk, then mitigate against the risk. Risk mitigation if done appropriately can help save on costs associated with the risk.
4. Monitoring: all the strategies applied need to be constantly evaluated to ascertain that they are productive. This is beneficial in determining the strategies that work and those that need improvement.
In our case the best illustration of a firm adhering to the goal of financial management is a decrease in the per-unit production costs.
Answer:
The correct answer is the option B: a marketing strategy.
Explanation:
To begin with, when it comes to the term of deciding whether how to operate the primary business of the company and how to explode it as much as it can be exploded then we are talking about a marketing strategy that it has to be defined by the managers of the organization and that is due to the fact that in that strategy they will see how to communicate that the product is in sale, to whom the product should be sold, which is the price at what the price should be sold and where and when the product should be sold. So basicaly the marketing campaign will focus on how the product should be taken care in order to sell more and increase the profits and by deciding that the rest of the supply chain should be taken care by other business partners then the decision will be taken from the marketing strategy.
