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Ray Of Light [21]
3 years ago
10

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

Business
1 answer:
mixas84 [53]3 years ago
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.

You might be interested in
Some checking accounts require a minimum amount of money in the account or they charge point monthly fees?
QveST [7]

Answer:

True

Explanation:

4 0
2 years ago
Landrum Corporation is considering investing in specialized equipment costing​ $250,000. The equipment has a useful life of 5 ye
aalyn [17]

Answer: ARR = Average profit/Initial outlay x 100

               ARR = $19,000/$250,000 x 100

               ARR = 7.60%

The correct answer is C

               

               Depreciation = Cost - Residual value/Estimated useful life

                                       = $250,000 - $20,000/5 years

                                       = $46,000 per annum

               Average profit = Total profit/No of years

                                         = $325,000/5

                                         = $65,000

                                                                       $

              Average profit                           65,000

        Less: Depreciation                           46,000

       Average profit after depreciation   19,000

Explanation: In determining the accounting rate of return of the investment, there is need to calculate depreciation using straight line method. The amount of depreciation would be deducted from the average profit so as to obtain the average profit after depreciation. The average profit would be divided by the initial outlay in order to obtain the accounting rate of return.

5 0
2 years ago
(04.03 LC)
klemol [59]

Answer:

C. Safe driving

Explanation:

Behavioral factors refer to the lifestyle habits of an individual.  Auto insurance premiums are largely determined by the risk involved, as assessed by the insurance company.  Insurance companies consider

  • the car and its safety features,
  • the driver's history and habits,
  • insured credit history, among other factors, when determining auto premiums.

Safe driving is a habit that develops in a driver over time. It is captured in the driver's driving history.  A driver with few incidents and accidents than other pay lower insurance premiums. However, accident-prone drivers, those who drive many hours per day, and night drivers will always pay high insurance premiums.

5 0
3 years ago
You are a U.S. investor who purchased British securities for 2,340 pounds one year ago when the British pound cost $1.52. No div
Olin [163]

Answer:

Total Return = 10.45%

Explanation:

To calculate the return, we must first determine the appreciation in the value of the securities in terms of the US dollar.

The initial investment in terms of US dollar was of,

Initial Investment in USD = Investment in Pounds * Exchange rate

Initial Investment in USD = 2340 * 1.52

Initial Investment in USD = $3556.8

The current value of the investment in terms of USD is,

Current value of investment in USD = 2440 * 1.61

Current value of investment in USD = $3928.4

The formula to calculate total return is,

Total Return = (Current Value - Initial Value) / Initial Value

So, the total return based on US dollars was:

Total return  = (3928.4 - 3556.8) / 3556.8

Total Return = 0.10447 or 10.447% rounded off to 10.45%

6 0
3 years ago
Why do you think constantinople's location influence its growth and financial success?
miv72 [106K]
Constantinople was located in the middle of the Mediterranean seas.
This location is definitely really strategic for Constantinople international trading because its connected the continents of Europe, Asia, and America. This makes Constantinople able to develop trading relationships with a lot of countries, which influence its growth and financial stability.
4 0
2 years ago
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