Answer:
does not include inventory as part of the numerator
Explanation:
The acid test ratio is somewhat similar to the current ratio. Both ratios are called liquidity ratio in which the short term assets are converted into cash to pay its short term liabilities. But the only difference in these two is
Current ratio includes current assets and current liabilities
While on the other hand, the acid test ratio or quick ratio include quick asset and current liabilities
Quick asset = Total Current assets - inventory - all other current assets
As inventory takes more time to convert into cash
Answer:
Explanation:
we would be answering this question by presenting the data in a spreadsheet file (which is a computer program that is used for accounting purposes as well as recording of data using columns and rows which information can be entered in such a useful way for decision making, data analyzing and for record keeping.)
Microsoft Excel would be the spreadsheet application that would be used in answering this question, kindly check the attached image to see the presented solution to the question above.
Answer: Option(b) is correct.
Explanation:
Correct Option: Avoidable fixed costs.
A relevant costs refers to the costs that are related to the particular management decision and these costs will change in future corresponding to the change in decisions. While making a decision, relevant costs includes only avoidable costs and incremental costs which helps businesses. It helps in removing extraneous information from a procedure of decision making.
Answer:
<u><em>Causal research </em></u>
Explanation:
When a company needs precise answers about the effects of various proposed marketing actions on important outcomes , <u>Causal research </u>should be used .
<em>Causal research is a type of research in which there is a investigation on cause and effect relationship.</em>
Causal research is a important thing. In causal research the problem is clearly define causal research allow replication if there is a need of do so.Causal research helps in identifying the channel of causal.
But causal research does not support the discovery of other factors which also important , it also doesn't reveal the resource used .
Answer:
The correct answer is letter "C": both costs and revenues may be analyzed.
Explanation:
Incremental analysis studies two options from where only one is to be selected. It is a helpful tool that allows allocating limited resources efficiently. It is mostly implemented to find out which alternative provides the greater yield producing at the lowest cost. Incremental analysis does not consider sunk or past costs.
Therefore, <em>incremental analysis may study both costs and revenues between two options.</em>
