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Harlamova29_29 [7]
4 years ago
5

The American Association of Individual Investors (AAII) has identified several qualitative factors that should also be considere

d when evaluating a company's likely future financial performance. Consider the scenario and indicate how you would expect the described event or situation to affect the described business organization. How would you expect this situation to affect the assessment of Eastern's financial condition and performance?
Eastern Manufacturing Products Inc.
Eastem assembles computers in the owner's garage from parts the owner orders over the Internet. This industry is characterized by low barriers to entry, including few operating licenses or governmental approvals, and small investments in productive equipment or facilities.

Although nonquantitative factors may be relevant to a company's financial evaluation in general terms, the details of this specific situation are not relevant to the firm's financial condition or performance.
Its low barriers to entry expose Eastern to increased risk of competition, which could negatively affect the predictability of its expected future sales revenues.
Its low barriers to entry expose Eastern to decreased risk of competition, which could improve the predictability of its expected future sales revenues.
Business
1 answer:
wel4 years ago
7 0

Answer:

Option 1 is the Correct Answer

Explanation:

Eastern Manufacturing being a one item organization is reliant on a solitary item for their benefit. As the item is at its immersion organize in showcase, the advancement of new item can carry another method for income to organization or the organization would before long face endurance issues.

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positioning strategy.

Explanation:

Developing a marketing strategy aimed at influencing how product is perceived in comparison to competiton. It includes four steps which are:

1. Analyse

2. Competitive advantage

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8 0
3 years ago
The growth of industrial manufacturing affected skilled tradesmen by:.
alina1380 [7]

answer:

removing control of their labor and their sense of independence.

8 0
2 years ago
If the market price is above or equal to the average cost, but below the average cost the firm should keep producing in the run
tangare [24]

If the market price is above or equal to the average variable cost, but below the average total cost the firm should keep producing in the run even though it does so at a loss.

<h3>When should a firm shut down production?</h3>

A firm should continue production in the short run if the price is above the average variable cost even if price is below the average total cost. The short run is a period when at least one or more factors of production are fixed.

To learn more about when a firm should shut down, please check: brainly.com/question/13034691

6 0
2 years ago
Newhard Company assigns overhead cost to jobs on the basis of 115% of direct labor cost. The job cost sheet for Job 313 includes
MakcuM [25]

Answer:

Results are below.

Explanation:

<u>First, we need to allocate overhead:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 1.15*10,700= $12,305

<u>Now, we can determine the total manufacturing cost:</u>

Total manufacturing cost= 15,745 + 10,700 + 12,305

Total manufacturing cost= $38,750

<u>Finally, the unitary cost:</u>

Unitary cost= 38,750 / 1,550

Unitary cost= $25

4 0
3 years ago
Factors related to the susceptibility of accounts to misstatement or fraud include?
Vitek1552 [10]

Factors related to the susceptibility of accounts to misstatement or fraud include the Size of the account balance and the volume of transactions.

A fraud risk factor is an event or condition that: (1) shows rationalizations or attitudes that justify wrongdoing; (2) Demonstrates motivation or pressure to commit fraud; or (3) provides an opportunity to commit fraud.

From the auditor's perspective, the three components of audit risk are inherent risk, control risk, and detection risk.

Inherent risk refers to the vulnerability of a statement to susceptibility misrepresentation due to error or fraud that, individually or in combination with other misrepresentations, could be material before appropriate controls are applied. increase.

Learn more about susceptibility at

brainly.com/question/28169324

#SPJ4

6 0
2 years ago
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