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butalik [34]
4 years ago
9

Disadvantages of Residual Income.

Business
1 answer:
3241004551 [841]4 years ago
7 0

Answer: a. Residual income, like ROI, can encourage a short run orientation

Explanation:

Residual incomes presents the same problem as ROI measurement, The problem of myopic behaviour or short run orientation

The manager may cut expenses like advertising expenses, maintenance expenses , training expenses when being evaluated under residual income or ROI to reflect a favourable residual income or return on investments, The problem Managers being short run orientated is not eliminated or minimized by change methods between ROI and Residual income.

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Melody Manufacturing is currently producing 1,000 component parts by incurring costs of $68,000 for direct materials, $30,000 fo
STatiana [176]

Answer:

$124,000

Explanation:

The maximum amount that Melody should pay to acquire 1,000 components is the total of all relevant costs directly attributable to manufacture the components. Such as;

Direct materials $68,000

Direct labor 30,000

Variable overhead 18,000

Fixed overhead 8,000

($20,000-$12,000) _______

$124,000

3 0
3 years ago
Emily, a college student, reads an article in Money magazine. The author has a degree in finance. The article is about getting a
Mashutka [201]
The answer that would best complete the given statement above would be the first option. <span>Emily, a college student, reads an article in Money magazine. The author has a degree in finance. The article is about getting a home equity loan. This information is RELIABLE AND RELEVANT. Finance relates not only how to manage money but also how to acquire needed funds. </span>
8 0
4 years ago
Read 2 more answers
When sales double, a pizza restaurant finds its costs for sauce, dough and electricity increase, because these are __________.
Nastasia [14]

The costs of sauce, dough and electricity increase, because these are variable costs.

Variable costs are costs that change with the level of output. When output increases, variable costs increases and when output declines, variable cost decreases. When the demand for pizza increases, variable input would increase and this would increase variable costs.

On the other hand, fixed costs are costs that do not variable with the level of output.

To learn more about variable cost, please check: brainly.com/question/25879561

3 0
2 years ago
Select the correct answer.
Brut [27]

Answer:

D

Explanation:

3 0
3 years ago
Read 2 more answers
MARKING BRAINIEST
Luba_88 [7]

Answer:

Sales

Explanation:

S stands for sales. The moving averages formula uses sales figures from the previous periods to forecasts future sales.  For example,

say, sales for 2015 were 100; 2016 were 120; 2017 were 110; and 2018,..130. Using the formula, the forecast for 2019 will be

Forecast 2019 = Sales 2015 + Sales 2016+ Sales 2017+ sales 2019 / 4

Forecast 2019 = 100 + 120 +110 + 130 / 4

Forecast 2019=115

8 0
3 years ago
Read 2 more answers
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