What are the business debts called?

Kumaran Pillay has a vegetable stall at the Suva Market. His business has been plagued with under-stocking and over-stocking pro

spayn [35]

Answer:

1) Using the 3 qualitative forecasting methods

Executive opinions,

Delphi method,

Salesforce polling.

2) Using the 2 quantitative forecasting methods:-

The straight-line method,

The average approach.

Explanation:

1) Using the 3 qualitative forecasting methods

Executive opinions- In this method, he could seek subjective views from experts concerning his sales. this might be viewed on his purchasing, finance, and future sales. However, it's utilized in conjunction with other quantitative forecasting methods so as to realize the simplest forecasts.

Delphi method- He could question a gaggle of experts about their views individually. they are doing not meet to avoid manipulation in judgments. Forecasts during this case might be compiled and analyzed by an external observer and returned to the experts for further questioning.

Salesforce polling- he could use this approach whereby he reaches bent people that are in touch with the regular customers and who can correctly predict the trends of the customers' consumption so as to offer him insights on how and when to restock counting on demand. This method is sweet for future forecasting since it gives the expected consumption trends of the purchasers that would be employed by the owner to make a decision on the quantity of inventory to stock in the future.

2) Using the 2 quantitative forecasting methods:-

The straight-line method- This is the only method of calculating future sales supported past data. It involves the utilization of a straight-line equation this measures the expansion or future predictions in sort of percentages. Here, past data is collected and a few analysis is completed to work out the trend that customers might adopt in their subsequent purchases. once they're known, the forecast on increasing or decreasing the inventory is predicated on percentage increase or reduction respectively. for instance, once demand is forecasted to grow, the vendor will decide the share they might order to hide the rise in demand.

The average approach- Here, the owner of a business conducts a mean of the past sales they need to be made to customers over a selected period. the most assumption is that the longer-term forecast is that the average of the past data. Since the owner has been making overstocking and understocking methods, it's assumed that the type of the orders is adequate to the longer-term forecast. for instance, if the owner decided within the past to order 100 units of a specific product and therefore the customers demanded quite 100 units maybe 150 units, there's an understocking decision. The owner might plan to increase subsequent stock to 200 units and at this point, the purchasers only demand 175 units making him to possess more stock than it had been required. On learning this concerning the market, the owner then decides to conduct a mean and order 150 units to require care of the overstocking and under-stocking problems.

5 0

3 years ago

How do i get my grade higher.60-80 and 70-80

balu736 [363]

You can always makeup work that you got a low grade on. You can do extra credit or finish the work you haven’t turned in (if you have anything) :)

8 0

2 years ago

Read 2 more answers

Accumulated depreciation shows a beginning balance of $9,300 and an ending balance of $10,700. How much depreciation expense was

faust18 [17]

Answer:

$1400

Explanation:

Accumulated depreciation is the total depreciation of an asset and is recorded on the balance sheet while the depreciation expense is recorded on the income statement as an expense.

The depreciation expense is the difference between the accumulated depreciation at the end and the accumulated depreciation at the beginning. It is given as:

Depreciation expense = accumulated depreciation at the end - accumulated depreciation at the beginning = $10700 - $9300 = $1400

Depreciation expense = $1400

6 0

3 years ago

Rey Company’s single product sells at a price of $216 per unit. Data for its single product for its first year of operations fol

erastovalidia [21]

Answer:

1. Using Absorption Costing

Income Statement

Sales 20,000 X $216 = $4,320,000

Less: Cost of Goods Sold (Note 1) =($1,240,000)

Gross Margin = $3,080,000

Less: Operating Expenses

Selling and Administrative Expense = ($560,000)

(Note 2)

Net Income = $2,520,000

Note:

Cost of goods Sold = All the direct variable cost + direct fixed cost = Direct materials + Direct Labor + Direct Overhead = $20 +$28 + $6 = $54 per unit, Total = $54 X 20,000 units = $1,080,000 + Fixed cost = $160,000 = $1,240,000
Selling And Administrative Expense = Variable + Fixed, Variable = $18 X 20,000 units = $360,000, Fixed Expenses = $200,000, Total = $560,000

2. Using Variable Statement

Sales 20,000 X $216 = $4,320,000

Less: Variable Costs

Direct Material $20 X 20,000 = ($400,000)

Direct Labor $28 X 20,000 = ($560,000)

Variable Overhead $6 X 20,000 = ($120,000)

Variable Selling Expense $18 X 20,000 = ($360,000)

Contribution Margin = $2,880,000

Less: Fixed Costs

Fixed Overhead = ($160,000)

Fixed Selling & Administrative = ($200,000)

Net Income = $2,520,000

Note: Under Variable Statement first variable expenses are deducted to get the value of contribution, and then fixed expenses are deducted to get net income, whereas in absorption costing firstly manufacturing expenses are deducted to get gross margin and then operating expenses like selling and administrative expenses are deducted to get the net income.

But Net income is same in both cases.

5 0

3 years ago

A disadvantage of corporations is that shareholders have to pay on profits.

olga_2 [115]

Answer:

taxes

Explanation:

just took the test

4 0

2 years ago