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Alex
2 years ago
14

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 __________.
Business
1 answer:
valina [46]2 years ago
5 0

Answer: Decrease

Explanation:

What makes return on investment fantastic is when production and sales is on a steady increase, as production increases and sales follow there after, there would be an increase in return on investment because the increase in sales would make room for expansion giving the business more profit, but in the scenario where raw materials are not promising, there would be a decrease in production overtime and which would also lead to a decrease in return on investment.

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Prepare journal entries for each transaction and identify the financial statement impact of each entry.
madam [21]

Answer:

Cash (Dr.) $21,200

Common Stock (Cr.) $21,200

Cash (Dr.) $4,500

Services to client (Cr.) $4,500

Cash (Dr.) $11,200

Unearned Revenue (Cr.) $11,200

Cash (Dr.) $5,900

Accounts Receivable (Cr.) $5,900

Cash (Dr.) $11,000

Notes Payable (Cr.) $11,000

Explanation:

Adams services may record these transactions as journal entries. The transactions may have some changes after they are recorded then adjusting entries will be prepared to reflect the correct effect of transaction on business activities.

7 0
3 years ago
All of the following are true about ERP EXCEPT: Select one: a. ERP is an acronym for enterprise resource planning. b. ERP is pri
Sloan [31]

Answer: b. ERP is primarily used by manufacturing organizations and does not serve service organizations well.

Explanation:

Enterprise Resource Planning(ERP) is very useful to companies as it supports many enterprise processes by integrating resources of the company such as manufacturing, finance and supply chain management with the view to make operations more efficient.

It is false that it does not serve Service organizations well because ERP takes into account the unique resources that an organization has so it does not matter if it is a service or a manufacturing organization. It serves both.

8 0
2 years ago
__________ argues that the productivity of workers will increase if they are paid more, and so employers will often find it wort
Triss [41]

Answer:

Efficiency wage theory

Explanation:

Efficiency wage theory was first postulated by Alfred Marshall, where he viewed compensation to workers as based on their efficiency.

Companies use efficient wage to reduce staff turnover, as staff are motivated to stay because of wages that are above the industry standard.

It is also a way to reduce cost mostly in industries where the cost of staff replacement is high.

6 0
3 years ago
A. the government often uses excise taxes, called "sin taxes," to manipulate consumption of cigarettes. draw and label the shift
sukhopar [10]
The amount of sin tax that will be paid by all of the mentioned parties will depend per country. In fact, in the US, sin tax may even differ per state so the price of consumers and producers will already factor in the percentage of sin tax that they will pay. As to why it will most likely not reduce the consumption, this is because these vices are generally addictive and already serve as habits for some people. Because of this, people will most likely not decrease their consumption significantly since they continuously look for it. In fact, they will be willing to pay more to get it. 
7 0
3 years ago
Notson, Inc. produces several models of clocks. An outside supplier has offered to produce the commercial clocks for Notson for
sveta [45]

Answer:

The production of the clocks should be continued, as buy option will increase the cost for the company by 48,000

Explanation:

Current escenario

100 DM x 1,200 = 120,000

140 DL x 1,200 = 168,000

80 VO x 1,200 = 96,000

Fixed Cost 150 x 1,200 = 180,000

Total cost = 564,000

420 x 1,200 = 504,000

60% fixed cost unavoudable 180,00 = 108,000

Total Cost 612,000

make 564,000

buy (612,000)

total cost saving (48,000)

7 0
3 years ago
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