Answer:
B) cost of merchandise sold divided by average inventory.
Explanation:
Inventory turnover: It is a liquidity ratio that measures the number of times on average a company sold or replaced its inventory during the period. Computed as the cost of goods sold / by the average inventory on hand during the period. Analysts compute average inventory from the beginning and ending inventory balances. The ideal inventory turnover ratio is about 4 to 6, it is a rate at which restock item is well balanced with the sold inventory.
Answer:
The correct answer is letter "C": Is used to record the income effects of errors in making change and/or processing petty cash transactions.
Explanation:
The Cash Over and Short account is used to register a company's cash shortages and overages. <em>It is an Income Statement account used by firms in front of inaccurate differences at the moment of replenishing a petty cash fund.</em> In such a case, the Cash Over and Short account is useful to measure employee's cash management efficiency.
Answer:
Option (a) is correct.
Explanation:
Given that,
Variable cost per rented = $20
Average price charged per night for the room = $100
Fixed cost = $100,000
Target profit = $20,000
Contribution margin per room = Average price - Variable cost
= $100 - $20
= $80
Now, we need to determine the number of rooms rented out by dividing the sum total of fixed cost and target profit by the contribution margin per room.
Therefore, the number of rooms will be rented out is calculated as follows;
= (Fixed cost + Target profit) ÷ Contribution margin per room
= ($100,000 + $20,000) ÷ $80
= $120,000 ÷ $80
= 1,500
Answer:
Letter a is correct.<u> Forecasting demand.</u>
Explanation:
The correct alternative is forecasting demand, because it is only possible to predict future demand for the manufacture of some good, according to the statistical data of the service provided, so this is an area between manufacturing and related services.
Demand forecasting is a process of finding statistical and economic data that assists in future organizational control, such as sales and cash flow planning, inventory and purchasing control, production planning and others.
By analyzing the past scenario it is possible to predict variables that will impact the future of the business, so for the forecast to be carried out effectively, some steps must be considered:
-
Data collection and analysis
;
- Objective identification of the applied model
;
- Forecasting techniques;
- Monitoring
.
Demand forecasting technique, when well planned and executed, guarantees several strategic and competitive benefits for the company, besides being an essential instrument in the decision making process.
