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larisa86 [58]
3 years ago
12

A company uses return on investment (ROI) to measure the performance of its business units. The company manufactures and distrib

utes consumer goods. Last year, management identified a possible shortage of raw materials. To mitigate this risk, a large amount of raw material was bought in advance and stored in the manufacturing plant inventory. As a result of this decision, ROI will A. Have an unpredictable change. B. Decrease. C. Increase. D. Not change.
Business
1 answer:
dalvyx [7]3 years ago
6 0

Answer: B. Decrease

Explanation:

Return on investment refers to the ratio between the net income and investment. It should be noted that a high return on investment implies that the investment's gains compare favourably to the cost.

In this scenario, since a large amount of raw material was bought in advance and stored in the manufacturing plant inventory, this will lead to an increase in the cost of production which therefore will reduce the return in investment.

Therefore, the correct option is B.

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According to the following screening criteria, how many public companies are there in the United
IgorC [24]

Answer:

ya know 4

Explanation:

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7 0
2 years ago
Lead indicators guide management to: Multiple Choice pursue identical strategies as those implemented with lag indicators. take
zheka24 [161]

Answer:

take actions now that will have positive effects on organizational performance in the future.

Explanation:

Lead indicators can be defined as an economic indices such as level of company stock prices or corporate profits, which usually changes before any significant corresponding change in the state of an economy. Thus, leading indicators serves as leaders or drivers for a business firm or organization.

Generally, lead indicators guide management to take actions now that will have positive effects on organizational performance in the future because they are variables that corresponds to a future variable of interest.

5 0
3 years ago
"Paid as agreed" on your credit report is:
frutty [35]

Answer:

B. Good. It means your loan is paid off.

Explanation:

When the account says "Pay as agreed," it means all the payments have been made in full and within the time agreed with the creditors.   On the credit report, the ''pay as agreed'' is a status that shows all payments were made as per the terms of the creditor.

The "pay as agreed'' status shows the customer as a low-risk borrower. A lender will be willing to advance credit to such customers.

5 0
3 years ago
assume you have taken out a partially amortizing loan for $1,000,000 that has a term of 7 years, but amortizes over 20 years. ca
olga55 [171]

Answer:

The balloon payment for this loan would be $581,213.92. This can be calculated by taking the original loan amount of $1,000,000, multiplied by the interest rate of 9%, then multiplied by the difference in the amortization period (20 years) and the loan term (7 years). This equals $540,000. Finally, add the original loan amount to the interest amount, resulting in $1,540,000. This is the total amount due at the end of the loan term, or the balloon payment.

Explanation:

6 0
1 year ago
Consider a firm with a contract to sell an asset for $138,000 five years from now. the asset costs $74,000 to produce today. giv
shepuryov [24]

The cost to produce today = 74000

At a discount of 12%, the future value of costs in 5 years = PV*(1+r)^n where PV = 74000, r= 12% = 0.12 and n = 5 years = 5

The value of costs in 5 years = 74000*(1+0.12)^5

The value of costs in 5 years = 74000*1.12^5

The value of costs in 5 years 130,413.28

Price in 5 years = 138,000

Profit = 138,000-130,413.28 =  7,586.72

The profit the firm will make on this asset (considering time value of money) = $7,586.72

6 0
4 years ago
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