(A) creating superior customer value and satisfaction.
When customers are satisfied with products and services, it tends to build a lasting relationship, and that is why some customers will stick to a particular product for years irrespective of change in price or change in income. Value to customers as to do with what they benefit from your product or services rendered, and so to create superior customer value satisfaction, you need to understand what your customers really want and ensure that they get value/benefit.
Answer:
Following Statement is true
Operating income has increased as a percentage of revenue.
Vertical Analysis
Year 2 Year 1
Fees Earned $153,500 $149,700
Operating expenses <u>$122,800</u> <u>$127,245</u>
Operating Income $30,700 $22,455
Operating Income as percentage of sales 20% 15%
Operating Income as percentage of sales is increased in year 2.
<u>Which of the following statements are true?</u>
Operating income has decreased as a percentage of revenue.
Operating income has increased as a percentage of revenue.
None of these choices are correct.
Operating expenses have increased as a percentage of revenue
Answer: Three items will appear being;
2. Sale of delivery truck at book value
5. Sale of a debt security held as an available-for-sale investment
6. Collection of loan receivable.
Explanation:
The Investment Section of the Cash Flow Statement contains activities related to investment such as the buying or selling of fixed assets and the buying or selling of other company stocks or bonds.
Out of the above therefore, there are 3 activities that would fall under this section of the Cash Flow Statement.
They are;
2. Sale of delivery truck at book value.
- This refers to the sale of a Fixed asset and as such it goes to the investment section.
5. Sale of a debt security held as an available-for-sale investment.
- As a debt security of another firm that was considered available for sale, this goes to the Investment Section as well.
6. Collection of loan receivable.
- Finally, collection of loan receivable means that the company loaned money to another company making it an investment related cash inflow as it is a long term Investment income source.