Answer:
a. Cost cutting may lead to the loss of desirable features
Explanation:
In the business market, sometimes there occurs a price war between the various companies regarding the same type product and each company reduces the price to as minimum as possible to take the cost leadership in the market. Some drawbacks that occur in such a strategy of companies are listed here -
- There is a tight control on the expenses during the manufacturing of products which often results in loss of desirable features in the products
- No new innovations are made as companies focus mainly of the current product
- The feedback of customers seem to be of no importance in such conditions
- This strategy promotes the lower quality products in the market
A company has quick assets of $ 300,000 and current liabilities of $ 150,000. The company purchased $ 50,000 in inventory on credit. After the purchase, the quick ratio would be d. 1.75.
Inventory refers to all of the gadgets, items, products, and materials held with the aid of a commercial enterprise for selling within the marketplace to earn a profit. instance: If a newspaper supplier makes use of an automobile to supply newspapers to the customers, handiest the newspaper may be taken into consideration in inventory. The vehicle can be dealt with as an asset.
Inventory is an asset due to the fact a company invests money in it that it then converts into sales while it sells the inventory. stock that doesn't promote as quickly as anticipated may become a liability.
The principle feature of stock is to offer operations with ongoing delivery of materials. To gain this feature correctly, your enterprise has to attempt to discover a sweet spot between an excessive amount and too little, without ever going for walks out of inventory.
quick assets = 300000
quick liablities= 150000
inventory on credit
quick assets = 350000
quick liablities= 200000
quick ratio = 350000/200000
= 1.75
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Similar energy sources and their price is connected because they provide the same commodity which is energy
Answer:
see below
Explanation:
This transaction is affecting sales. It is increasing sales( revenue account) by Rs 20,000. An increase in sales is recorded by crediting the sales account.
The goods are sold to Mahesh. It is an increase in accounts receivable ( asset account). An increase in assets is recorded as a debit to the asset account.
The Journal will be as follows.
Mahesh A/c Dr. Rs. 30,000
Sales A/c Cr. Rs.20,000
