Answer:
d) <u>cash flow</u>
Explanation:
Small businesses are characterized by limited scale of operations and small quantum of revenues. Thus, small businesses in their initial stages have to deal with the common problem of shortage of funds owing to delay in receipts from debtors owing to relaxed credit terms.
The receipts are not received on time while the expenses accumulate which leads to a situation of cash crunch wherein it gets difficult to meet expenses and liabilities.
Thus, to avoid such situations businesses have to consider their credit policies and credit allowing limit so as to ensure enough cash to meet day to day working capital requirements.
This points towards being careful of cash inflows and outflows and efficient management of cash flows, keeping check on receipts and payments to ensure smooth operations.
Answer:
RA=11.6%
Explanation:
RA=Rf+(Rm-Rf)Ba
RA=?
Rf=5.25%
Rm=12.5%
Ba=.88
RA=5.25%+(12.5%-5.25%).88
Answer:
2. Stereotyping
Explanation:
Stereotyping is a prejudiced view of a person based on a mistaken belief or idea of many people.
George had a belief that women have difficulty coping in stressful situations and making executive decisions. When Sally is promoted to a senior management position his stereotype of women comes to play as George starts to complain that Sally would not be able to cope with the job.
Missing information:
Corporation makes 5,700 units of part U13 each year. This part is used in one of the company's products. The company's Accounting Department reports the following costs of producing the part at this level of activity: Per Unit Direct materials $9.60 Direct labor $7.80 Variable manufacturing overhead $10.20 Supervisor's salary $5.90 Depreciation of special equipment $8.80 Allocated general overhead $8.00 An outside supplier has offered to make and sell the part to the company for $25.10 each.
Answer:
annual financial advantage of purchasing part from outside vendor = $73,380
Explanation:
current production costs per unit:
- direct materials $9.60
- direct labor $7.80
- variable manufacturing overhead $10.20
- supervisor's salary $5.90
- depreciation of special equipment $8.80
- allocated general overhead (fixed) $8.00
- total current costs per unit = $50.30
- total costs $50.30 x 5,700 units = $286,710
costs if company decides to purchase the part form outside vendor:
- purchase cost per unit $25.10
- deprecation of special equipment $8.80
- allocated general overhead $8.00
- total costs per unit = $41.90
- total costs $41.90 x 5,700 = $238,830
- - revenue generated from using facility space = $238,830 - $25,500 = $213,330
annual financial advantage of purchasing part from outside vendor = $286,710 - $213,330 = $73,380
