Answer:
A
Explanation:
Since the proposed plan increases the firm's financial risk, the stock price might fall even if EPS increases.
Answer:
The Prestige Company's cash conversion cycle is 77.2 days which makes B the correct choice.
Explanation:
We have the cash conversion cycle is the average amount of time it takes for company to convert cash outflow for inventory purchasing to cash inflow for revenue generating, which is calculated as:
Cash conversion cycle = Days of inventory outstanding + Days of sales outstanding - Days of payable outstanding = 42.7 + 91.3 - 56.8 = 77.2 days.
So, B. 77.2 days is the correct choice.
Answer: D. A manager's salary for work that is done in the corporate head office.
It is a cost incur in the process of production, but has no relationship with the production inventory, for example a manager and other worker's salary, marketing expenses, rent, advertising expenses, etc.
Explanation:
A period cost is also known as period expenses, it is a cost incur during a period when a business has no production, or business activities, it is a type of cost that cannot be recorded as production asset, production inventory, prepaid expenses, period cost are easily linked with accounting period and time than being linked with any production process or finished product.
Answer:
A. socialist elements in the US Economy
Explanation:
Socialism is shared costs and shared resources. While the US economy is not socialistic, it does have elements of socialism through certain government programs.
