Answer:
The correct answer is letter "A": The EBITDA coverage ratio increases.
Explanation:
The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) ratio is an accounting indicator that measures the profitability of a company. It is calculated by subtracting the costs of goods sold and administrative expenses from the firm's income. The EBITDA is typically used to value the capacity for generating benefits of an entity considering only its productive activity because it indicates the returns obtained from the direct exploitation of the business.
Therefore, <em>if the EBITDA of a firm increases it is because its financial position has possibly increased.</em>
Answer:
Correct answer is option d
Overhead cost per unit
Product X100 = $825
Product Z300 = $1400
Explanation:
Overhead cost per unit = (OAR × machine hours/labour hours per unit)
<em>Each product would be charged for overhead in each department using the overhead absorption rate applicable in each department</em>
Overhead cost per unit X100:
($50×15) +($15 × 5) = $825
Overhead cost per unit Z300
($50×25) +($15 × 10) = $1400
Answer:
D) Credit to Merchandise Inventory for $4,000
Explanation:
Date Account and Explanation Debit ($) Credit ($)
Account Receivable 5,800
Sale 5,800
(Recorded the sale on credit)
Cost of goods sold 4,000
Merchandise Inventory 4,000
(Recorded the cost of goods sold)
Answer:
The correct answer is (B)
Explanation:
In participative leadership managers usually involve employees in making and implementing various decisions. Participative leadership is a type of democracy which help managers and employees to work together to achieve a common goal. Managers usually ask employees to join them in decision making and everybody is free to speak and suggest different measures. Although, very few managers use a participative leadership style.
