Answer: The advantage of the basic earning power ratio (BEP) over the return on total assets for judging a company's operating efficiency is that the BEP does not reflect the effects of debt and taxes
Explanation:
a. This is correct.
The advantage of basic earning power ratio over the return on the total assets for judging a firm's operating efficiency is that the basic earning power does not reflect effects of debt and taxes.
b. This is incorrect.
Only the price/earnings ratio of the company will tell us nothing about a company. When we compare the price/earnings of a company with the peers, we would know whether such company is under valued, or over valued or maybe fairly valued.
c. This is incorrect.
The total assets is made up of total liabilities plus the shareholders equity, when other things are held constant, less debt simply means less liabilities. To balance both sides, the total assets should reduce as the shareholder's equity is constant. When total assets decreases, the return on the assets will increase.
d. This is incorrect.
We can reach a conclusion on which firm is better managed based on the facts given. The debt ratio is the total liabilities divided by total assets, and a lower ratio is known to be good in comparison to a higher ratio. Similarly, the profit margin is the profit divided by the sales, and low profit margin shows high expenses and also a need for the management to decrease the expense.
Answer:
B. The long-run average total cost curve is derived by tracing out all of the firm's short-run average total cost curves.
ANSWER: (A)
EXPLANATION: Gross margin is the difference between revenue and cost of goods sold divided by revenue. Gross margin is expressed as a percentage. Generally, it is calculated as the selling price of an item, less the cost of goods sold. Gross Margin is often used interchangeably with Gross Profit, but the terms are different.
Because the Bic pens have been on the market for a long time, they uses more of a <u>reminder advertising</u> to motivate existing customers to make a purchase.
<h3>What is a
reminder advertising?</h3>
This is a type of advert that aims to remind the existing audience that the firm's product or service is available.
Therefore, the companies uses more of a <u>reminder advertising</u> to motivate existing customers to make a purchase because it is less expensive than an elaborate advertisement.
Read more about reminder advertising
<em>brainly.com/question/9938991</em>
