Answer: Earnings are reported by the investee in its financial statements
Explanation:
Equity method is when investments are being treated in associate companies and it is usually applied in cases whereby an investor entity holds about twenty to fifty percent of the associate company's voting stock. Due to this reason, it has a strong say in the associate company's management.
Under the equity method of accounting for investments, an investor recognizes its share of the earning in the period in which the earnings are reported by the investee in its financial statements.
Answer:
a. - $3,200
b. $15,200
Explanation:
The computation of the working capital for both the years is shown below:
Beginning of Year
= Accounts receivable + inventory - accounts payable
= $25,400 + $12,700 - $15,200
= $22,900
End of year
= Accounts receivable + inventory - accounts payable
= $23,700 + $13,900 - $17,900
= $19,700
So, the change in net working capital
= $22,900 - $19,700
= - $3,200
b. The computation of the cash flow for the year is shown below:
= Sales - costs - change in working capital
= $36,700 - $24,700 - (-$3,200)
= $15,200
Customer satisfaction is increased as a result of quality management, which also enables businesses to meet customer expectations. One of the key areas where businesses need to be knowledgeable enough is in the service quality.
<h3>What is Subway or any fast food restaurant?</h3>
One of the top brands on the global market is Subway, which places a high priority on maintaining the quality of its products and providing excellent customer service.
Some key features regarding the subway are-
- It consistently emphasizes the quality of the ingredients as well as the eventual deliverables in its marketing methods.
- The business is committed to providing natural food products that are healthful and free of artificial additives and calories.
- The customers' health is directly correlated with the meal quality.
- To remain competitive in the marketplace and achieve its goal of being the healthiest alternative in the fast food sector, the company must maintain the quality of the items.
To know more about the subway, here
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Answer:
Feed forward control.
Explanation:
The above example is a type of feed-forward control. It is a process which consists of phases and the product or services is provided in stages. The feed-forward control system is a viable technique that helps to select the best goods and the best manufacturer. Starling manufacturing INC. has applied a feed-forward control procedure to select the new supplier.
Answer:
diseconomies of scale because average total cost is rising as output rises
Explanation:
Economies of scale is the fall in average costs due to an increase in output. This occurs since as more units are produced, fixed costs are being spread over a larger number of units, hence the fall in average costs.
For example,
Variable cost per unit = $20
Fixed costs = $20,000
If 1000 units of a product is produced, average cost = [20,000 + (20 x 1000)] / 1000 = $40.
If 2000 units are produced, average cost = [20,000 + (20 x 2000)] / 2000 = $30.
This shows that as output rises, the average cost per unit falls.
<u>However,</u> the average cost curve is always a U shape. This is because after a particular output level, average costs will rise, as in the case provided. This is diseconomies of scale. Diseconomies of scale is a rise in average total costs as output increases. This is caused by certain inefficiencies that can occur in large firms. For example, bureaucracy, decision making takes more time or there are errors in production as communication disruptions occur. Ultimately, average costs will rise.