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3 years ago

To increase total asset turnover, management must either increase sales or reduce total stockholders’ equity.A. TrueB. False

Business

1 answer:

8090 [49]3 years ago

7 0

Answer:

FALSE

Explanation:

Remember, total asset turnover is calculated using a ratio that measures how the management was able to use its assets to efficiently increase sales. Usually the total asset turnover is gotten by dividing a company's sales by its total assets.

To increase sales, management should continue to use its existing assets (not making purchase of any new asset), and at the same time reducing their purchases of inventory.

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Write a memo to management detailing the various classifications of costs and provide two reasons for which it is important to c

Zigmanuir [339]

Answer:

Classifications :

Direct Costs
Indirect Costs
Product Costs
Period Costs
Variable Costs
Fixed Costs

Reasons for classifying costs :

Inventory valuation
Profit Measurement

Explanation:

The first step in Cost Classification if to Identify the Cost object.The Cost object is the unit or entity for which determination of cost is required.

By observing the cost accumulating on the cost object we would identify two types of costs :

Direct Cost - Costs that can be traced on the cost object
Indirect Cost - Costs that can not be directly traced on the cost object

Another category used to classify costs is whether or not they will be included in product valuation.

Product Cost - Attached to Product and included in valuation
Period Cost - Not attached to product and thus not included in product valuation

Lastly the Costs Behaviors bring about different classifications as follows :

Variable Costs
Fixed Costs
Semi-fixed Costs
Semi - Variable Costs

4 0

4 years ago

The price of a European call option on a non-dividend-paying stock with a strike price of $50 is $6. The stock price is $51, the

klemol [59]

Answer: 2.09

Explanation:

Given the following ;

Strike price (K) = $50

Price (c) = $6

Rate (r) = 6% = 0.06

Stock price (So) = $51

Time (T) = 1

Recall, relation for a put-call parity(p) is given by:

p + So = c + Ke^-(rT)

p = c + [Ke^-(rT)] - So

p = 6 + [50e^-(0.06 × 1)] - 51

p = 6 + [50×e^-0.06] - 51

p = 6 + (50 × 0.9417645) - 51

p = 6 + 47.0882267 - 51

p = 53.0882267 - 51

p = 2.0882267

p = 2.09

4 0

3 years ago

Raleigh BBQ has $48,000 in current assets and $39,000 in current liabilities. Decisions related to these accounts are referred t

cestrela7 [59]

Assuming Raleigh BBQ has $48,000 in current assets and $39,000 in current liabilities. This refers to as working capital management.

<h3>What is Working Capital Management?</h3>

Working capital management can be defined as the way in which a company or an organization ensures that both their current asset and current liabilities are put in use effectively and efficiently.

A company who make use of working capital management as a strategy will tend to ensure that their liabilities does not exceed their assets so as to maintain the company financial health.

Therefore this refers to as working capital management.

Learn more about working capital management here:brainly.com/question/14736085

7 0

3 years ago

Smart Stream Inc. uses the variable cost concept of applying the cost-plus approach to product pricing. The costs of producing a

olya-2409 [2.1K]

Answer:

Smart Stream Inc.

1. Total variable costs = $2,400,000

2a. Variable cost per unit = $240

2b. The variable cost markup percentage = 12.46%

2c. Selling price per unit = $325

Explanation:

a) Data and Calculations:

Variable costs per unit:

Direct materials $150

Direct labor 25

Factory overhead 40

Selling and administrative expenses 25

Total $240

Fixed costs:

Factory overhead $350,000

Selling and admin. exp. 140,000

Total fixed costs = $490,000

Smart Stream desires a profit equal to a 30% rate of return on invested assets of $1,200,000

Profit target = $360,000 ($1,200,000 * 30%)

Total variable costs = $2,400,000 ($240 * 10,000)

Variable cost per unit = $240

b. The variable cost markup percentage =

Variable cost markup = $360,000 * $2,400,000/$2,890,000 = $298,962

Variable cost markup percentage = $298,962/$2,400,000 * 100 = 12.46%

Fixed cost markup = $360,000 * $490,000/$2,890,000 = $61,038

Total cost = $2,890,000

Target profit 360,000

Total sales revenue = $3,250,000

Selling price = $325 ($3,250,000/10,000)

8 0

3 years ago

Leslie, the owner of a shoe store, purchased 500 Model XT-50 running shoes from her supplier, but a price was not stated in the

SIZIF [17.4K]

Answer:

False

Explanation:

The contract is not voidable at Leslie's option but rather at the supplier's option. This is because Leslie has agreed to the buy the shoes, irrespective of the price.

Should Leslie want a price stated in the contract, the case has to be taken to court and the judge will have a price stated that suits both parties.

Cheers

3 0

3 years ago