Answer:
15.4%
Explanation:
Calculation to determine what would the ROI be
ROI=[ ( $2.40 - $1.30) * 21,400 - $7,400]/100,000
ROI=($1.1 * 14,000)/100,000
ROI=$15,400/100,000
ROI=0.154*100
ROI=15.4%
Therefore the ROI would be 15.4%
Answer:
Target costing does not begin with the determination of the cost of the product and then focusing on developing ways to sell the product at a price that will enable the company to achieve its desired profit margin.
The correct answer is B
Explanation:
In target costing, the company does not determine the price because the price is determined by the market. Target costing begins with determining the target profit. Then, the company deducts the target profit from the market price in order to obtain the target cost.
Answer:174 SE Naranja Ave, Port Saint Lucie, FL ; 38 Maple St, Fitchburg, MA ; 461 SE Thornhill Dr, Port Saint Lucie, FL
Explanation:
Answer:
B. Preparing a trial balance
Explanation:
A trial balance is not account, it simply represents a list of debits and credits derived from the ledgers. The list is usually generated after transactions have been taken from their source documents, posted to the journals and then transferred to the ledgers.
The trial balance will usually list the total of ledger items posted as debit or credit balances just as they are in the ledgers.
As said earlier, the trial balance is not an account, it is a self-check to ensure that there are no numerical errors in the debit and credit postings in the ledgers.
It simply ensures that the credit balances are equal to the debit balances meaning every debit entry had a corresponding credit entry confirming the use of double entry principle in ledger preparation.
The financial statements are usually prepared after the trial balance has verified the accuracy of debit and credit entries.
Answer:
The correct answer is the option A: Margin of safety ratio.
Explanation:
To begin with, the name of <em>"Margin of Safety"</em>, in the field of business and accounting, is refered to a ratio whose main purpose is to establish the point in where the company knows that it has to sale obligately due to the fact that at that point the company can be sure that they have covered the fixed costs of it and after that point every sale will became a profit for the company. So that is why that this ratio indicates the percentage of each sales dollar that is available to cover those costs.
