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Akimi4 [234]
3 years ago
12

The difference between a​ firm's operating income and income before taxes is​ _____. The difference between a​ firm's ​before-ta

x accounting profit and ​after-tax accounting profit is​ ____. A. ​taxes, investments B. ​investments, taxes C. ​owner's equity, current liabilities D. cost of goods​ sold, taxes
Business
2 answers:
muminat3 years ago
8 0

Answer:

The correct answer is B. ​investments, taxes.

Explanation:

BAIT is an accounting indicator of the profitability of a company that is calculated as income minus expenses, excluding taxes and interest that the company has to pay from expenses.

BAII or BAIT is also known as an operating result or EBIT (Earnings Before Interest and Taxes).

BAII = Revenue - Cost of goods sold - Operating expenses

It is a ratio widely used in financial analysis because it is very easy to compare between companies and not including taxes or interest avoids discrepancies that arise between different forms of capital and tax rates paid by companies. It is used to perform the Dupont analysis and calculate the ROE, among other ratios.

BAI is the acronym for Profit Before Tax. As its own name points out, it is an indicator of the operating result of a company without taking into account taxes. The BAI is reached after subtracting operating expenses from income. It would therefore be the gross profit, without going through the magnifying glass of the Treasury and of the banks or other creditors.

The BAI is an indicator used to measure the progress of the business, since it can be compared annually or quarterly to see its evolution. Therefore, it is a regular income statement.

monitta3 years ago
3 0

Answer: Option A

Explanation: Operating income refers to the income that the company earns from performing its core operations. It is also denoted as EBIT. Thus, the difference between operating income and income after tax is the tax that has been deducted from the operating income.

While calculating accounting profit, opportunity cost is not deducted from the revenue hence before tax and after tax depicts the investments that were made to earn that profit.

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Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors ha
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Answer:

Proposal A: 5,455 units

Proposal B: 5,770 units

Explanation:

The break-even point is the number of units required for the revenue to equal the total costs.

For proposal A:

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(P-VC)*n-FC = 0\\(24-13)*n-60,000 = 0\\n=5,454.5\ units

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(P-VC)*n-FC = 0\\(24-11)*n-75,000 = 0\\n=5,769.2\ units

Rounding up to the next whole unit, the break-even points for proposal A and B, respectively, are 5,455 and 5,770 units.

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