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
liraira [26]
3 years ago
13

Business risk is affected by a firm's operations. Which of the following is NOT directly associated with (or does not directly c

ontribute to) business risk? Demand variability. Sales price variability. The extent to which operating costs are fixed. The extent to which interest rates on the firm's debt fluctuate. Input price variability.
Business
2 answers:
Tamiku [17]3 years ago
8 0

Answer: The extent to which interest rates on the firm's debt fluctuate

Explanation:

Business risk refers to the possibility of a business entity making a loss as a result of uncertainties associated with the firm. It includes all factor that could deter a firm from meeting its financial obligations. Factors like demand variability, sales price variability, operating cost and input price variability directly affect attainment of a firm's set financial objectives.

Elis [28]3 years ago
5 0

Answer:

The correct answer is letter "D": The extent to which interest rates on the firm's debt fluctuate.

Explanation:

Business risk refers to all the threats that could potentially represent losses for a firm as a result of its operations. Changes in <em>consumer preferences, competition, government regulations, war, natural disasters</em>, are a few examples of those threats.

<em>The fluctuations of interest rates could bring losses to the company in front of increases but it could also represent a benefit when they decrease since companies would pay less for their debts. Therefore, the changes in interest rates are not direct business risks.</em>

You might be interested in
What is a product item?
Vsevolod [243]

Answer:

Explanation:

A product item is a specific version of a product that can be designated as a distinct offering among an organization's products. A product line is a group of closely related products offered by an organization.

5 0
3 years ago
Effect of Inventory Errors
pav-90 [236]

Answer:

Effect of Inventory Errors

1. Kate Interiors Company:

Ending Inventory of $378,500 counted as $366,900.

This shows that Ending inventory is undervalued by $11,600 ($378,500 - 366,900).

The cost of goods sold will be overstated by $11,600 and the net income understated by $11,600 in the income statement.

In the balance sheet, the assets are understated by $11,600 and Equity (Retained Earnings) understated by the same amount.

2. Waterjet Bath Company:

Ending Inventory of $719,880 counted as $728,660.

This shows that Ending inventory is overvalued by $8,780 ($728,660 - 719,880).

The cost of goods sold will be understated by $8,780 and the net income overstated by $8,780 in the income statement.

In the balance sheet, the assets are overstated by $8,780 and the Equity (Retained Earnings) overstated by $8,780.

Explanation:

An overstatement of Ending inventory results in understated cost of goods sold and overstated net income.  Conversely, an understatement of ending inventory results in overstated cost of goods sold and understated net income.

7 0
3 years ago
Hudson Co. reports the contribution margin income statement for 2015. Assume sales remain constant at 10.000 units.HUDSON CO. Co
gizmo_the_mogwai [7]

Answer:

Results are below.

Explanation:

Giving the following information:

Selling price= $244

Unitary variable cost= 195 - 8= $187

Fixed costs= 327,600 + 37,000= $364,600

<u>We need to determine the new pre-tax income:</u>

Sales= 244*10,000= 2,440,000

Total variable cost= 187*10,000= (1,870,000)

Total contribution margin= 570,000

Fixed costs= (364,600)

Pre-tax income= 205,400

5 0
3 years ago
General pharmacy’s stock has a beta of 1.8 and an expected return of 14%, and sicoras corp.’s stock has a beta of 1.5 and an exp
Shalnov [3]
Given:
<span>General pharmacy’s stock has a beta of 1.8 and an expected return of 14%,
Sicoras corp.’s stock has a beta of 1.5 and an expected return of 16.2%.

Let Rf stand for risk free rate.
Let Rm stand for expected market return.

General Pharmacy: 14% = Rf + 1.8(Rm-Rf)
Sicoras Corp.: 16.2% = Rf + 1.5(Rm-Rf)

0.14 = Rf + 1.8Rm - 1.8Rf
0.14 = Rf - 1.8Rf + 1.8Rm
0.14 = -0.8Rf + 1.8Rm
0.14 + 0.8Rf = 1.8Rm

Rm = 0.14/1.8 + 0.8Rf/1.8
Rm = 0.078 + 0.444Rf

</span><span>0.162 = Rf + 1.5(Rm-Rf)
</span>0.162 = Rf + 1.5[(0.078+0.444Rf) - Rf]
0.162 = Rf + 0.117 + 0.666Rf - 1.5Rf
0.162 - 0.117 = Rf + 0.666Rf - 1.5Rf
0.045 = 0.166Rf
0.045/0.166 = Rf
0.271 = Rf

<span>Rm = 0.078 + 0.444Rf
</span>Rm = 0.078 + 0.444(0.271)
Rm = 0.078 + 0.120
Rm = 0.198

Rf = 27.1% ; Rm = 19.8%

The risk free rate is 27.1% and the expected market return is 19.8%.

To check, simply substitute the value of Rf and Rm in the above equation.
5 0
3 years ago
Accounting assessment q15/15 assigning indirect costs to specific jobs is completed by _____.assigning indirect costs to specifi
borishaifa [10]

Assigning indirect costs to specific jobs is completed by D. applying indirect costs to work in process.

<h3>What are indirect costs?</h3>

Indirect costs are costs that are not directly traceable to cost objects (e.g. a job, product, or service unit).

Indirect costs are overheads incurred as a result of a business activity but without direct impact.  For example, utilities, office supplies, etc. are all indirect costs.

Thus, assigning indirect costs to specific jobs is completed by D. applying indirect costs to work in process.

Learn more about indirect costs at brainly.com/question/24762880

#SPJ1

5 0
2 years ago
Other questions:
  • The biggest U.S. stock exchange is located in which city?
    12·1 answer
  • Which of the following correctly describes how price adjustments eliminate a shortage?
    15·1 answer
  • Which would you trade on a stock exchange?<br> A) shares<br> B) bonds<br> C) annuities
    12·2 answers
  • Fatal(focus)_______events caused almost three out of five construction worker deaths
    13·1 answer
  • The marketing manager for an automobile manufacturer is interested in determining the proportion of new compact-car owners who w
    5·1 answer
  • A stock has a beta of 1.4, an expected return of 17.2 percent, and lies on the security market line. A risk-free asset is yieldi
    10·1 answer
  • Audio engineers at 3XT2 have determined that an anechoic additive will increase isolation and improve signal to noise by about 2
    13·1 answer
  • Comparing ABC and Plantwide overhead Cost Assignments Wellington Chocolate Company uses activity-based costing (ABC). The contro
    10·1 answer
  • Describe in your own word the three types of leadership.
    7·2 answers
  • Stanley is 21 years of age, single, living at home with Mom, Dad, and his younger sister, but he is not claimed by his parents.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!