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3 years ago

when comparing companies in different industries a higher profit margin always indicates which company has better management

1 answer:

4 0

Answer: B. When comparing companies in different industries, a higher profit margin always indicates which company has better management performance

Explanation:

The profit margin refers to how much profit the company is making given the amount of sales it makes. It is therefore very dependant on the expenses incurred by the company.

This is why comparing management in different industries by using the Profit margin is like comparing apples and oranges. Industries are different and so are their methods of operation. One industry might require more expenses than another and still only make less sales which would impact it's profit margin negatively.

Profit Margin is best used for companies in the same industry.

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The Janjua Company had the following account balances at 1/1/18:

Step2247 [10]

Answer:

a. Journal Entry:

Investments in Debt securities (Dr.) $1500

Fair Value of Debt securities(Cr.) $1500

b. Equity Section:

Common Stock $65,000

Retained Earnings $22,000

Treasury Stock $13,400

Revaluation of Debt securities $1,500

Explanation:

Investments in AFS Debt securities 40,000

Fair value of the investment on 12/31/2018 is $41,500

The difference between fair value and reported value will be adjusted through journal entry. The difference is of $1500 (41,500 - 40,000) is the revaluation amount of the securities.

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3 years ago

Triano Brothers, an insurance firm, follows an administrative procedure for measuring the relative worth of its jobs. The organi

Alexus [3.1K]

Answer: Option (B)

Explanation:

Here, in this case we can state that <em>job evaluation </em>is being exemplified. The Triano Brothers are using job evaluation, so as to have a systematic approach in order to determine value of a job in regards to the several jobs in their organization. The organization attempts to have a orderly comparison in between different jobs as to assess the relative value.

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4 years ago

Your opportunity cost of taking this course is: a. the net benefit of taking this course. b. the net benefit of the activity you

umka21 [38]

Answer:

Correct option is B.

The net benefit of the activity you would have chosen if you had not taken the course

Explanation:

Your opportunity cost of taking this course is <u>the net benefit of the activity you would have chosen if you had not taken the course </u>

Opportunity cost is what you must sacrifice when you choose an activity. By taking this course, you are sacrificing the benefit you could have obtained from the activity you would have chosen if you had not taken the course.

5 0

4 years ago

Oakwood Primary Care Clinic is considering a capitation arrangement with a managed care organization in which the clinic would p

lutik1710 [3]

Answer:

5000

Explanation:

Oakwood Primary Care Clinic is considering a capitation arrangement with a managed care organization in which the clinic would provide services to 1,500 members at $100 per member per month. Variable costs are projected at $200 per clinic visit, and fixed costs for the agreement are $800,000. Breakeven point in volume of clinic visits is 5000.

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4 years ago

Assume that Corn Co. sold 7,600 units of Product A and 2,400 units of Product B during the past year. The unit contribution marg

Afina-wow [57]

,Answer: a. 9,450 units

Explanation:

You need to find the weighted average contribution margin for both products.

Product A

Weighted average contribution margin = Contribution margin * Units sold / Total units sold

= 34 * 7,600 / (7,600 + 2,400)

= $25.84

Product B

= 59 * 2,400 / 10,000

= $14.16

Breakeven point in units = Fixed costs/ (Weighted average contribution margin of both A and B)

= 378,000 / (25.84 + 14.16)

= 9,450 units

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3 years ago