Answer:
bigger is the correct answer.
Explanation:
Answer:
A
Explanation:
The list contains more weaknesses than strengths
The list of weaknesses are:
Excess manufacturing capacity relative to market; If you are producing more than you are selling then its a weakness
Large inventories; that dont sell its a weakness
Lack of management depth; means that management does not have a proper foundation
Management turnover; if you keep changing management it will affect the company as skilled workers will be leaving
The list of strengths are:
Cost advantages; cost advantage against your competitors is an added strength
Market leadership; having a large market share is equally an advantage
Answer:
d. 0.8% and 1.3%.
Explanation:
The default risk premiums on the bonds issued by Shell = 6.5% - 5.7% = 0.8%
The default risk premiums on the bonds issued by Ford = 7.5% - 6.2% = 1.3%
Hence, the default risk premium issued by Shell and Ford respectively are 0.8% and 1.3%
When Prior year ending inventory understated by $ 50,000 :
If the ending inventory of the prior year has been understated then the COGS of the prior year get overstated which ultimately understated Pretax income by the same margin.
Prior year ending inventory is the current year opening inventory, so when the prior year ending inventory has been understated that means the current year opening inventory is also getting understated. Which resulted in an understatement of COGS and due to which pretax income of the current year gets overstated by the same margin.
Total pretax income of the two years = $ (50,000) + $ 50,000 = Nil ( No effect).
The four most commonly used inventory types are Raw Materials, Work in Process (WIP), Finished Goods, Maintenance, Repair, and Overhaul (MRO). Knowing the nature of your inventory will help you manage your inventory better and smarter. Consider a fashion retailer like Zara, which operates seasonally.
Learn more about inventory at
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