All categories

3 years ago

Higher fixed costs are associated with:_____.

Business

1 answer:

VladimirAG [237]3 years ago

6 0

Answer:

a. 1 and 3.

Explanation:

Given that the operating leverage of a business firm is a sum of its fixed cost and variable cost about the way the firm's cost of business is attributed.

In this case, when a business firm has a high fixed cost, it normally requires a high number of sales to earn more profits. This is termed as "higher operating leverage." This thereby leads such business firms to have "increased risk."

Hence, It is practically correct that in business operation that when a business firm has Higher fixed costs it is associated with "higher operating leverage and increased risk"

You might be interested in

g "6. Financially, why would a company: (a) increase its dividend; (b) buy back some of its common stock shares; (c) pay down so

VikaD [51]

Answer:

(a) increase its dividend;

dividends are increased for two reasons:

the company has excess cash and it doesn't have any possible investments on hand
the board and upper management want to increase the stock price and higher dividends always result in higher stock prices, even if it is only in the short run.

(b) buy back some of its common stock shares;

the company has excess cash and the board and upper management believe that the stock price is too low.

the company has excess cash and it considers that the cost of its debt is too high and it can get cheaper financing from other sources if needed.

(d) increase its use of internal financing;

the board and upper management considers that the company needs to invest in new or existing projects and they consider that the financing costs are too high. Also, on the long run if things work well, the stock price should increase.

(e) take the public firm private

the company has excess cash and the board and upper management believe that the stock price is too low. It is similar to (b) only on an extreme situation.

5 0

3 years ago

In December 2008, Hawaiian Telecom took action to strengthen its balance sheet by reducing debt. Although the company continued

Liono4ka [1.6K]

Answer:

1. Reorganization

Explanation:

The reorganization is the position where the firm wants to restructure its business so that the company could able to improve its profitability by making good decisions, proper working in the organization, resource utilization, etc

While at the same time the liquidation is the winding up of the company or shut down of the company due to high losses suffered in the business

Therefore in the given case, since the Hawaiian telecom took an action for better off the balancing sheet by decreasing debt that represents the reorganization example

4 0

3 years ago

Davy's reduction in productivity after not receiving a raise demonstrates that there is low _____________ between performance an

jeka94

Answer:

The correct answer is B. Instrumentality, Valence.

Explanation:

Víctor Vroom's motivational model has been studied and improved over time by other authors such as Porter and Lawler.

The Vroom model is based on three assumptions:

The forces within individuals and those present in their work situation combine to motivate and determine behavior.
Individuals make conscious decisions about their behavior.
The selection of a particular course of action depends on the expectation that certain behavior of one or more desired results rather than undesirable results.

The author of this theory explains that motivation is the result of multiplying three factors:

Valencia: It demonstrates the level of desire of a person to reach a certain goal or objective. This level of desire varies from person to person and in each of them it can vary over time, being conditioned by the experience of each individual. The range of values that valence can admit in this mathematical equation is between –1 and 1. When a person does not want to reach a certain result (eg being fired from their job) the value adopted is –1, when the result is Indifferent (Ex. Compensation in money) the value is 0 and when the person intends to reach the objective (Ex. Obtain a promotion) its value will be +1
Expectation: It is represented by the person's conviction that the effort placed in their work will produce the desired effect. Its value varies between 0 and 1 since the expectation is the probability of occurrence of the desired result. Expectations depend largely on the perception that the person has of himself, if the person considers that he has the necessary capacity to achieve the objective, he will be assigned a high expectation, otherwise he will be assigned a low expectation.
Instrumentality: It is represented by the judgment made by the person that once the work is done, the organization values it and receives its reward. The instrumentality value will be between 0 and 1.

4 0

3 years ago

Greenbelt Construction has been a successful small home-building firm for years. The owner pays subcontractors slightly more tha

kipiarov [429]

Answer: Option (E)

Explanation:

Supply chain management is referred to as or known as broad/wide range of activities which are required in order to control, plan, and execute a commodity's flow, i.e. from the primary stage of acquiring raw material and thus production to the final stage of distribution to consumer, in most streamlined, efficient and effective way that is possible.

In other words it encompasses or encloses integrated execution and planning of a procedure which is required in order to optimize flow of the material, financial capital and information in areas which include sourcing, demand planning, production, storage and inventory management, logistics and also the return of defective products.

4 0

3 years ago

Reyes Corporation applies overhead using an actual costing approach. Budgeted factory overhead was $266,400, budgeted machine-ho

AURORKA [14]

Answer:

Allocated MOH= $274,320

Explanation:

Giving the following information:

Budgeted factory overhead was $266,400, budgeted machine-hours were 18,500. The actual machine-hours were 19,050.

First, we need to calculate the estimated manufacturing overhead rate. Then, we can allocate overhead.

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 266,400/18,500= $14.4 per machine-hour.

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 14.4*19,050= $274,320

8 0

4 years ago

Read 2 more answers