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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>

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Answer:

E)excessive markups

Explanation:

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A private oil company is embarking on a joint pipeline project with the government. Which type of network will they set up for p
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A Joint Venture is the type of network that the private oil company and the government should set-up to manage the project. In other business terms, joint venture between a private and a public entity is also known as a Public-Private Partnership. It holds both parties responsible for the tasks to be delivered at hand. There are contracts and agreements between the two parties to be made in order for the project to work and become successful.
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6 0
3 years ago
Which of the following refers to the costs of production that fluctuate depending on the number of units​ produced? A. Total cos
Natalka [10]

Variable cost refers to the costs of production that fluctuate depending on the number of units​ produced.

<h3><u>Explanation:</u></h3>

The cost of any product that changes based on the quantity of goods that are produced. The volume that is produced decides the fluctuations in the variable cost. Fixed cost is the cost that will not change based on the number of units of the goods that is produced. Rent of a building can be considered as a fixed cost.

Example for variable cost may be raw materials cost, packaging cost,etc. Variable cost can be calculated by adding up the cost of labor and raw materials that are used in the production of one unit of a good. The total variable cost can be calculated by multiplying   variable cost per unit with the number of units produced.

3 0
3 years ago
Anderson Corporation has provided the following production and average cost data for two levels of monthly production volume. Th
nata0808 [166]

Answer:

Option (D) is correct.

Explanation:

Calculation of total manufacturing overhead:-

4000 units manufacturing overhead:

= Production volume ×  Manufacturing overhead

= 4,000 × $94

= $376,000

5000 units manufacturing overhead:

= Production volume ×  Manufacturing overhead

= 5,000 × $77.60

= $388,000

Variable cost per unit:

=\frac{5000\ units\ manufacturing\ overhead-4000\ units\ manufacturing\ overhead}{1000}

=\frac{388,000-376,000}{1000}

= 12

Fixed cost = Total cost - variable cost

                 = $388,000 - 5,000 × 12

                 = $388,000 - $60,000

                 = $328,000

So total monthly fixed manufacturing cost is $328,000.

7 0
3 years ago
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