Having recently completed a business class, you suggest to Allison that she calculate the <u>"inventory turnover"</u> ratio for her store, and then compare it to other stores in her industry.
Inventory turnover is a ratio indicating how often an organization has sold and supplanted stock amid a given period. An organization would then be able to partition the days in the period by the inventory turnover equation to ascertain the days it takes to move the stock close by. It is determined as deals separated by normal stock. Computing inventory turnover can enable organizations to settle on better choices on valuing, fabricating runs, how to use advancements to move overabundance stock, and how and when to buy new stock. Inventory turnover may likewise be found by partitioning cost of merchandise sold with normal stock.
Answer:
Income under absorption costing = $1,100,000
Explanation:
Marginal and absorption costing are two different methods to deal with fixed production overheads and and decide whether or not they are included in valuation of inventory.
<u>Valuation of inventory</u>
Opening and closing inventory are valued at variable cost under variable costing. Whereas in absorption costing, opening and closing inventory are valued at full production cost (including fixed production overheads).
<u>Reconciling profits reported under two different methods</u>
When inventory levels increase or decrease during a period then profits will differ under absorption and marginal costing because of fixed production cost.
Net Income under absorption costing = Income under variable costing + fixed production cost in ending inventory – fixed production cost in beginning inventory
= $1,050,000 + $300,000 - $250,000
= $1,100,000
Answer: centralized
Explanation:
Based on the information given in the question, we can infer that McCoy operates a centralized department.
This is a centralized department because McCoy takes the decisions in the organization. In a centralized department, the organizational structure is such that the power regarding the decision is confined to top management, while the followers just follow the instructions
Answer:
problems
before
franchise
idea
Any two of these:
Make time to meet with clients instead of talking on the phone.
Join a business networking group.
Take business colleagues or prospects out to lunch at least once a week.
Teach a workshop in your field at the community college.
Any two of these
Freedom
Creativity
Profit
Explanation:
pf
Let us go to the basic accounting equation: Assets = Liabilities + Shareholder's Equity. The equity multiplier is computed by dividing the total assets with the total shareholders' equity. We know the total assets as $85,3000. Using the formula for the equity multiplier, we can calculate the amount of the shareholders' equity. The given equity multiplier is 1.53. To calculate the shareholders' equity, we just have to divide the $85,300 (total assets) with 1.53 (equity multiplier). We can get the amount of $55,752. Using the accounting equation, we can compute <span>the amount of liabilities as $29,548. The formula to get the debt-equity ratio is dividing the total shareholder's equity by the liabilities. $55,752 divided by $29,548, we can get 1.89 as the debt-equity ratio.</span>