The goal of any reasonable firm is to optimize its earnings. Providing incentives to the workers is one of the management methods to induce maximum effort from them in order to achieve the objective of the firm.In the present structure of employee settlement where the retail personnel is paid a fixed wage of $20 per hour, there's no reward for the retail sales staff to push more difficult for the sales and increase the profits. There is no penalty on them in case the sales go down and the profits are negatively affected.In the proposed worker compensation structure where each of the retail personnel is paid 1 percent of the shop's daily revenues over and above a fixed wage of $10 per hour, the staff is motivated to work harder to increase the sales and the profits of the firm. Each of the retail staff members then will be motivated by self-interest and devise methods to increase their productivity so that they can maximize their everyday compensation. Hence, by taking care of their self-interest, they will indirectly help in attaining the company's objective of maximizing its daily earnings to $25,000 per shop.
Answer:
e. Planning and budgeting purposes.
Explanation:
Sales variance analysis is used by managers for planning and budgeting purposes, as this analysis allows managers to better understand the company's sales scenario in a given period in relation to different variables such as budgeted quantity, quantity sold and amount of profit made.
Through analysis, greater control and strategic planning and future budgets are possible so that an organization remains profitable and competitive in the market.
Answer: Decrease the company's use of debt capital because it will decrease the equity multiplier (TRUE)
Reduce the company's operating expenses, its cost of goods sold, and/or the interest rate on its borrowed funds because this will increase the company's net profit margin (TRUE)
Decrease the amount of debt financing used by the company which will decrease the total asset turnover ratio (FALSE)
Use more debt financing in its capital structure and increase the equity multiplier (TRUE)
Explanation:
EQUITY MULTIPLIER is given as (Total Asset)/(Total shareholders equity). It measures how much of a company's asset is financed by shareholders. A company finances its assets through the combination of shareholder equity and DEBT (liability). Thus, the greater the percentage of debt used in financing asset, the lower the proportion of equity used. In order words, if debt decreases, asset decreases and therefore equity multiplier decreases.
NET PROFIT MARGIN is given as (Net Profit)/(Sales Revenue). Net profit increases when operating expenses, cost of goods sold, and interest rate deceases. This will lead to an increase in net profit margin.
TOTAL ASSET TURNOVER RATIO is given as (Net sales)/(Total Asset). It measure the effectiveness of an organisation to produce and make sales using its assets. If debt financing is decreased, it lead to a decrease in total asset and then increase (not decrease) in asset turnover ratio (assume net sales does not change)
We had defined equity multiplier above. If we use more debt financing, the proportion of equity in asset reduces, leading to an increase in equity multiplier.
Answer:
<h2>In this case, the correct answer would be option c) given in the answer options or Tracks inventory balances with every receipt and every withdrawal of inventory.</h2>
Explanation:
- In Accounting and Economics, perpetual inventory system involves the calculation or updation of the inventory count or record for every individual individual inventory transaction.
- Whenever a good is withdrawn or purchased from the inventory or dded to the inventory for later purchase or consumption, it is immediately recorded or updated under a perpetual inventory system.
- Hence, perpetual inventory system requires the updates of the inventory record or count immediately after any good is purchased, sold or added into the inventory.
- The final sale of any good from the inventory is recorded as a sales revenue for the concerned firm or company and any purchase of any good by the company for future sale which is added into the inventory is generally recorded as the cost of goods sold account.
Answer and Explanation:
A will report the gain at the time when the bond is adjusted to the fair value as there is a reduction in the far value of the liabilities that occured the gain. In the case when the fair value is changed so there is also the changed in the rate of interest due to this the rate of interest is rised.
Here A would be reported the gain in the net income as there is the change in the rate of interest due to the change in the fair value
In the case when there is the chaneg in the fair value of the bond so this is because of the change in the credit risk and the same should be shown in the statement of the comprehensive income as other comphrensive income
