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insens350 [35]
2 years ago
11

Assessments of how a diversified company's subsidiaries compare in competitive strength should be based on such factors as:

Business
1 answer:
larisa86 [58]2 years ago
8 0

Complete Question:

Assessments of how a diversified company's subsidiaries compare in competitive strength should be based on such factors as;

A. vulnerability to seasonal and cyclical downturns, vulnerability to driving forces, and vulnerability to fluctuating interest rates and exchange rates.

B. relative market share, the ability to match or beat rivals on key product attributes, brand image and reputation, costs relative to competitors, and the ability to benefit from strategic fits with sister businesses.

C. the appeal of its strategy, the relative number of competitive capabilities, the number of products in each business's product line, which businesses have the highest/lowest market shares, and which businesses earn the highest/lowest profits before taxes.

D. the ability to hurdle barriers to entry, value chain attractiveness, and business risk.

E. cost reduction potential, customer satisfaction potential, and comparisons of annual cash flows from operations.

Answer:

B. relative market share, the ability to match or beat rivals on key product attributes, brand image and reputation, costs relative to competitors, and the ability to benefit from strategic fits with sister businesses.

Explanation:

Assessments of how a diversified company's subsidiaries compare in competitive strength should be based on such factors as;

1. Relative market share: this measures the subsidiaries position in a market in relation to its competitors in the same industry. It is a measure of the percentage of the market they control.

2. The ability to match or beat rivals on key product attributes: this is really important in the assessment of competitive strengths because it represents the level of acceptance of their products by consumers in comparison with rivals.

3. Brand image and reputation: if the subsidiary is well accepted by the consumers, it simply suggests that they have a good brand image and reputation in the market. A good brand image and reputation is competitive strength.

4. Costs relative to competitors: the higher the price a company is selling its products relative to rival companies, the lesser its sales would be because consumers would naturally go for cheaper products or lower prices.

5. The ability to benefit from strategic fits with sister businesses: companies should be able to achieve their set goals and objectives from opportunities presented by their sister company.

<em>Hence, the competitive strength of a diversified company and its subsidiaries should be assessed based on the aforementioned factors</em>.

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Answer:

If sales fall by 20 percent from 1,000,000 papers per month to 800,000 papers per month, <em>Average Fixed Costs will increase from $1.85 per paper to $2.31 per paper.</em>

Explanation:

The fixed costs  mentioned add up to 600,000 + 1,250,000 = $1,850,000 per month

The other costs mentioned (printing cost and delivery cost) are variable with output (per paper).

As fixed costs are the same regardless of output, falling sales will reduce the quantity on which fixed cost are spread (to calculate fixed cost) and thus make average fixed cost increases.

In this case, it increases from  1,850,000/1,000,000 (= $1.85 per paper) to  1,850,000/800,000 (= $2.31 per paper)

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3 years ago
A balance sheet has total assets of $1,664, fixed assets of $1,156, long-term debt of $614, and short-term debt of $191. What is
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Answer:

Total assets $1664 - fixed assets of $1,156 = $508

Assets $508 - Short term debt $191 = $317

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3 years ago
A decrease in the inventory account during the year should be reported on the indirect method statement of cash flows as:
Elza [17]

Answer:

a.An increase in cash flows from operating activities

Explanation:

The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.

The net profit/loss, depreciation, changes in current assets such as inventory, accounts receivables etc, (other than cash) and liabilities are considered as operating activities including income taxes.  

The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.

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3 years ago
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3 years ago
Activity-Based Costing: Selling and Administrative Expenses
lutik1710 [3]

Answer:

a) Total Sales order $60,000 and total Shipping is $28,000

b) Per unit sales order processing cost = $2.18 and shipping activity cost per walking shoe = $1.02

Explanation:

The question is divided into two parts

Part 1 ) Determine the Total Activity Cost as follows

Activity                                    Order               Rate             Total (Order x rate)

Sales Order Processing       5000 orders     $12/order        $60,000

Shipping                                1400 shipments $20/shipmt    $28,000

Total                                                                                          $88,000

Part 2)

a) Per-unit sales order processing cost

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Therefore Per unit cost = $60,000 / 27,500 = $2.18 per unit

b) Shipping activity cost per walking shoes

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Per Unit Cost of shipping = $28,000/27,500 = $1.02 per unit

The total Activity cost therefore is $2.18 + $1.02 = $3.20

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3 years ago
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