1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Simora [160]
3 years ago
8

The AFN equation assumes that the ratios of assets and liabilities to sales remain constant over time. However, this assumption

can be relaxed when we use the forecasted financial statement method. Three conditions where constant ratios cannot be assumed are economies of scale, lumpy assets, and excess capacity.A. TrueB. False
Business
1 answer:
Vera_Pavlovna [14]3 years ago
8 0

Answer:

The answer is A True

Explanation:

AFN which is "additional funds needed" is a concept used commonly in business looking to expand operations and influence. Since a business that seeks to increase its sales level will require more assets to meet that stated goal, some provision must be made to accommodate the change in assets. AFN is a way of calculating how much of new funds will be needed, so that the firm can realistically look at whatever or not they will be able to generate the additional funds and therefore be able to achieve the higher sales level.

Economies of scale are cost advantage reaped by companies when production becomes efficient. Firms can achieve economies of scale by increasing production and lowering cost. This does not involve calculating of new funds needed for a realistic expansion of the firm.

Lumpy assets are assets that cannot be acquired in small increments but must be obtained in large, discrete units.

Excess Capacity indicates to a situation in which the demand for a company's goods and services is less than its production capacity. This situation can arise in any firm during  the low point in a seasonal industry, where capacity is maintained to match the peak part of the season.

A constant ration can not be meet in this condition of economies of scale, lumpy assets, and excess capacity as these conditions  can not be used in raising funds or additional funds that are needed by the industry in its expansion.

You might be interested in
Marginal​ cost-benefit analysis and the goal of the firm Ken​ Allen, capital budgeting analyst for Bally​ Gears, Inc., has been
True [87]

Answer:

1) The marginal​ (added) benefits of the proposed new robotics.

560,000 - 400,000 = 160,000

2) The marginal​ (added) cost of the proposed new robotics.

220,000 - 70,000 = 150,000

3) The net benefit of the proposed new robotics.

160,000 - 150,000 = 10,000

4) What should Ken recommend that the company​ do? Why?

Replace the existing robotics because the net profit is positive

5) What factors besides the costs and benefits should be considered before the final decision is​ made?

A. Whether there will be additional training necessary with the new robotics.

B. Whether even better robotics may be available in a short while.

C. What will be the energy consumption of the new robotics.

5 0
3 years ago
Patricia made her career planning timeline in the year 2007. In what year
amm1812

Answer:

<h2>A. 2007 </h2>

Explanation:

Hope this is helpful

3 0
3 years ago
All of the following are true about time series methods EXCEPT a. they discover a pattern in historical data and project it into
motikmotik

Answer:

B. they involve the use of expert judgement do develop forecasts

Explanation:

A time series is a series of events that is spaced equally in time. It is a statistical technique used to identify a time based trend of events and them make forecast using data from the trend/time series.

Time series requires certain processes which include discovering of a pattern in the historical data, projection of the historical data into the future, assumption that the pattern will remain the same(constant) as the time goes by, etc.

In time series method, since historical data is the point of reference for making a forecast, no expert judgements is required to develop forecasts. This is because once the data of the series from the past has been taken and a trend/pattern has been identified, that becomes the basis for future forecasts.

Cheers.

8 0
3 years ago
Taylor must send a bad-news message to a client and indicate to her that he will be unable to meet a delivery deadline. What sho
Illusion [34]

Answer: d) Analyze the bad news to see how it will affect his reader.

Explanation:

The first thing that Taylor should do is to analyze the bad news so that he can predict the likely effect on the client.

Once he predicts this, he can be able to deliver the bad news in such a way that the client would not be too annoyed by it. It would also allow him to offer alternatives that might be applicable and doable to the client.

7 0
2 years ago
The ________ simplifies the interaction of two groups, firms and households, and allows us to make predictions about economic be
vladimir1956 [14]

Answer:

Circular flow diagram.

Explanation:

The circular flow diagram simplifies the interaction of two groups, firms and households, and allows us to make predictions about economic behavior.

The firm sells their goods and services in the market while the household buys these goods and services.

Hence, the circular flow diagram represents the interaction between the household and firms with respect to the market.

3 0
3 years ago
Other questions:
  • Luxury automobile manufacturers typically add​ quality, services, and other features to differentiate their offers and thus supp
    15·2 answers
  • Gamble Company adjusts its accounts at the end of each month. The following information has been assembled in order to prepare t
    9·1 answer
  • Ponderosa Development Corporation (PDC) is a small real estate developer that builds only one style of house. The selling price
    8·1 answer
  • You are 30 years old today and are considering studying for an MBA. You just received your annual salary of $50,000 and expect i
    5·1 answer
  • Moji Mont Company has a debt-equity ratio of .25. The required return on the company’s unlevered equity is 15 percent, and the p
    5·1 answer
  • If a store uses a selling price-based markup of 40%, and an item costs the store $300, what selling price would the store set fo
    6·1 answer
  • Giant Company has three products, A, B, and C. The following information is available:
    8·1 answer
  • The first skate board in the history of he world by betsy byars what is the moral of story.what is the conflict of the story.how
    13·1 answer
  • What can you learn from a stock market game?
    14·1 answer
  • What method is generally preferred to resolve contract disputes because it saves time, money, and preserves relationships betwee
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!