<span>You should make sure that everything on your side is in place to go against the new competition. You should be on the same page as your supplier to make sure your supplies are sent on time and complete. You should make sure your consumers are satisfied to prevent them from going to the new competition. Overall, your goal should be to maintain your consumers and suppliers.</span>
company B has the greater operating leverage
What is operating leverage?
A cost-accounting method called operating leverage assesses how much a company or project can raise operating income by raising revenue. A company with significant operating leverage creates sales with a high gross margin and low variable costs.
The break-even point of a business is determined using operating leverage, which also aids in determining the right selling prices to cover all expenditures and make a profit.
Regardless of whether they sell any units of product, businesses with significant operational leverage must cover a bigger amount of fixed costs each month.
Low-operating-leverage businesses may have high variable costs that are directly related to sales, but they also have fewer monthly fixed expenses.
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Answer:
Option D Data Dump
Explanation:
The provision of the unneccesary data alongwith the other necessary data to the user is reffered to as Data dumping. Data dumping by the salesperson might affect the opinion because the customer might change his mind to buy a specific product or postpond purchasing the product.
Answer:
$555,900
Explanation:
To determine the FVI amount that should be recorded, all closing costs must be added to the initial purchase price of the land
∴ = $490,000 + $29,000 + $1,900 + $6,000 + $29, 000
=$555,900.
Answer:
AC Problems : Incurred even at 0 output level, much varying & deviant from cash flows
VC Problems : Doesn't include fixed cost, incomplete expenditure, incomplete financial (accounting) statements.
Explanation:
Average Cost is the cost per unit off output.
Problems with AC as a performance measure :
- It includes all (fixed & variable cost) average. So, including fixed cost, it is not zero even at zero output level.
- It's variance analysis during production & cost phases is very complicated.
- It's result are deviant as evident from cash flows.
Variable Cost is the cost incurred on variable factors of production.
Problems with VC as a performance measure :
- It doesn't include fixed cost. So, it is not a correct measure of complete total expenditure.
- Fixed costs are huge. No financial inclusion of them makes accounting information unreliable (for legal purposes)
