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3 years ago

Which report is more effective in evaluating the performance of profit centers?

1 answer:

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Profit centers use departmental income statements reports for effectively evaluating the performance of profit centers.

<u>Explanation:</u>

The success of manager in generating the income or profits are evaluated by a profit center.It uses the income statements reports for the purpose of evaluating the performance of profit center in an effective way. The segment that intakes cost and generates profits is an investment center. They are mainly responsible in the effective utilization of an organisation's asset.

An enterprise determines the performance of a profit center financially in absolute terms. It is the profit potential of the unit that determines the performance Managers. A manager of a highly profitable segment gain more success than the lower one.

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As of December 31, the Stanford company has the following information. Use this information to answer questions 1 to 3. Cash $5,

Veseljchak [2.6K]

Answer:

$10,500

Explanation:

Calculation for Stanford Company's Working Capital

Using this formula

Working capital =Current Assets- Current Liabilities

Where,

Current Assets = Cash + Accounts Receivable + Inventory + Prepaid Insurance

Current Assets = ($5,000 + $15,000 + $40,000 + $3,000) = $63,000

Current Liabilities = Accounts Payable + Notes Payable in 5 Months + Salary Payable

Current Liabilities = ($15,000 + $12,500 + $25,000) = $52,500

Let plug in the formula

Working capital =$63,000-$52,500

Working capital =$10,500

Therefore the Working Capital for Stanford Company will be $10,500

5 0

3 years ago

URGENT QUESTION - BUSINESS/COMPUTERS - I JUST NEED ADVICE/HELP

Korolek [52]

Hop it helped you and you get a good grade on that assignment

6 0

3 years ago

Read 2 more answers

The relationship between the benefits a consumer receives from a product or service and what they give up to obtain those benefi

Sati [7]

Answer: <em>Option (A) is correct </em>

Explanation:

Customer satisfaction can be referred to as a measure of how commodities and services provided by an organization meets customer expectation. On the other hand, it is defined as "the no. of individuals, or as % of total consumers, whose experience with an organization, its commodities, or its services meets satisfaction goals." It can also be referred to as a rapport between the benefits an individual receives from a commodity and its opportunity cost in order to obtain these benefits.

6 0

3 years ago

Calculations of cost and benefit are always which of the following?

alexandr402 [8]

Answer:

Explanation:

It’s subjective.

I think it’s subjective because it’s about the benefit of the calculations of a cost.

6 0

2 years ago

How does a market economy answer the three economic questions?

love history [14]

Answer:

A market economy answers the three economic questions by allocating resources and goods through markets, where prices are generated.

There are two extremes of how these questions get answered. In command economies, decisions about both allocation of resources and allocation of production and consumption are decided by the government. In market economies, there is private ownership of resources—established though property rights—and the factors of production and consumption are all coordinated through markets. In a market system, resources are allocated to their most productive use through prices that are determined in markets. These prices act as a signal for buyers and sellers. Most economies are mixed economies that lie between these two extremes.

In either system, a rational agent would allocate resources and production using marginal analysis. In command economies, this is more difficult to do because without markets, prices fail at being an effective signal.

Explanation:

I hope this helps!!

7 0

2 years ago