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3 years ago

The accuracy of cost-volume-profit analysis is limited because it assumes a strictly linear relationship between the variables.

Business

1 answer:

AnnyKZ [126]3 years ago

4 0

Answer:

True

Explanation:

One of the assumptions of this analysis is that it assumes a linear dependence on costs and income in the analysis interval.

A very useful tool when making strategic decisions, allowing to analyze different scenarios and individual projects, is the Cost-Volume-Profit.

Analysis (CVP) that works under the premise that variable costs increase in the same proportion that increases the sales of a product, while the fixed ones are independent of the volume of sales.

The CVP is useful both for planning and for evaluating results since it emphasizes the behavior of variable costs and the impact that a variation in sales volume can have on costs and benefits.

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A theory of strategic factor markets suggests that the resources a firm possesses might give it an advantage versus competitors

dybincka [34]

Explanation:

Organizations are integrated systems that use resources to achieve certain objectives and goals and become profitable and competitive.

Globalization was a phenomenon that contributed to an increase in the flow of information and changes in technologies and paradigms that contributed to a greater speed in consumer trends, and in the number of companies competing in the market.

Therefore, to achieve competitive advantage, it is not enough for the organization to use its resources in a conventional way, it is necessary to use strategies to add value to its processes. Considering the current business scenario, it can be said that the human resource in companies is the one that will give it a sustainable competitive advantage, since the knowledge acquired is one of the main resources used for the company to position itself in relation to competitors, each time more companies are promoters of social responsibility, so prioritizing knowledge and its stakeholders will always be the most advantageous option for creating value and competitive advantages.

4 0

3 years ago

On January 1, 2021, Avondale Lumber adopted the dollar-value LIFO inventory method. The inventory value for its one inventory po

Gelneren [198K]

Answer:

Avondale Lumber

Rebasing the Inventory at year-end using the dollar-value LIFO inventory method:

Year Ended Inventory year Cost index Inventory Amount

December 31 end costs (relative to base year) at year-end

2021 $340,000 1.02 $333,333

2022 350,000 1.06 $330,189

2023 400,000 1.07 $373,832

2024 430,000 1.10 $390,909

Explanation:

a) Data:

Year Ended Inventory year Cost index

December 31 end costs (relative to base year)

2021 $340,000 1.02

2022 350,000 1.06

2023 400,000 1.07

2024 430,000 1.10

b) The inventory at year-end costs is rebased using the cost index that is relative to the base year, by dividing the inventory costs by the cost index.

7 0

3 years ago

What is the amount of cash April Wood Products received from customers during the reporting period if its sales were $42.5 milli

Lera25 [3.4K]

Answer:

<u>$38.5 million</u>

Explanation:

Since the April Wood incoming transactions-accounts receivable increased by 4 million we obtain the cash value by substracting the question total accounts receivable value from the sales.

Where;

sales= $42.5 million

accounts receivable increase= $4 million

Amount of cash April Wood Products received from customers during the reporting period=

$42.5 million - $4 million= $38.5 million

7 0

3 years ago

Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases

eimsori [14]

Answer:

The correct answer is $800

Explanation:

Giving the following information:

Fulbright Corp. uses the periodic inventory system.

Fulbright made the following purchases (listed in chronological order of acquisition):

· 40 units at $100

· 70 units at $80

· 170 units at $60

Sales for the year totaled 270 units, leaving 10 units on hand at the end of the year.

Ending inventory= [(100 + 80 + 60)/3]*10

Ending inventory= 80*10= $800

6 0

3 years ago

The increase in the amount that the government collects in taxes when the economy expands and the decrease in the amount that th

Anni [7]

Answer:

Automatic stabilizers

Explanation:

These are necessary adjustments that are dependent on the state of the economy at particular times. An expanding economy is an economy in growth, there is a general feeling of stability and there is the mobility of funds around. Due to the presence and indication of growth, there is an increase in the amount of profits or gains made by the economy in general. Hence, government can decide to task more through tax.

However, in periods when there are indicators of an ailing economy, there should be a downward review of tax and the economy is weak at this state. Using the old taxing scheme during the good economy for now would result in an outcome that might further hurt business owners and push the economy more downwards.

Automatic stabilizers are just the mechanism through which the taxation at different times is adjusted

5 0

4 years ago