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3 years ago

The inventory turnover measures:

Business

1 answer:

pashok25 [27]3 years ago

7 0

Answer:

The average number of times inventory is sold during the period.

Explanation:

Inventory turnover by definition is the relationship between inventories and the cost of goods sold by a firm. It measures on average, how many times the inventory was restocked and sold in the operating period.

A higher number usually suggests a healthier operation cycle for a business.

It is measured by,

Inventory turnover = Cost of goods sold / Average inventory

Option 1 and Option 3 are related to the performance of accounts receivables. Option 3 is the closest to above mentioned definition. Option 4 is only measuring the inventory clearance time.

Hope that helps.

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According to the assumptions of CVP, ______ will not change as the volume of a product increases or decreases. total variable co

fgiga [73]

Answer:

Fixed costs, sales price, and variable cost per unit

Explanation:

Cost-volume-profit (CVP) analysis is a cost accounting technique that examines how operating profit is affected by varying levels of costs and volume. Another name for CVP is break-even analysis because for different sales volumes and cost structures, it provides the break-even point (BEP) for different sales volumes and cost structures. BEP can assist managers during the short-term economic decision making.

Some of the assumptions of CVP are that fixed costs, sales price, and variable cost per unit will not change even when the volume of a product changes. The change in the volume of a product can either be an increase or a decrease.

Therefore, according to the assumptions of CVP, fixed costs, sales price, and variable cost per unit will not change as the volume of a product increases or decreases.

I wish you the best.

5 0

3 years ago

If the marginal propensity to consume (MPC) is 0.8 and taxes decrease by $200, then real GDP will: Please choose the correct ans

NNADVOKAT [17]

Answer:

increase by $800

Explanation:

if taxes decrease by 200 then

GPD x tax multipler = net impact on GDP

the tax multiplier is calculated as follows:

$\frac{MPC}{1 - MPC}$

$\frac{0.8}{1 - 0.8} = \frac{0.8}{0.2}$

multiplier = 4

tax variation x multiplier

200 x 4 = 800

As the taxes decreases the effect on the GDP is positive.

7 0

3 years ago

Buyline is an e-commerce Web site. It has come up with a promotional offer where buyers get a 60 percent discount on refrigerato

Svetradugi [14.3K]

Answer:

Group buying platform

Explanation:

Group buying platform is also known as collective buying and is when the prices of goods and services are significantly reduced on the condition that a minimum number of buyers make purchase.

Usually there is a deal of the day displayed that is activated when the minimum number of buyers has been reached.

In this scenario Buyline has a promotional offer where buyers get a 60 percent discount on refrigerators if a minimum of 100 buyers agree to buy the product within 24 hours of the offer being announced.

This is a group buying platform

0 0

3 years ago

________ companies are often at the forefront of campaigns for causes such as a pollution-free environment; recycling and conser

omeli [17]

Answer:

The type of company that are at the forefront of campaign are proactive company.

Explanation:

A proactive company can be defined as a company, which puts great amount of emphasis on the forward thinking strategic planning ( where company sets its operational objectives, makes long term strategic decisions, assess strength and weakness etc ) rather than focusing on reactive strategies to manage the problems and taking advantage of business opportunities.

6 0

3 years ago

Phillips Equipment has 6,500 bonds outstanding that are selling at 96.5 percent of par. Bonds with similar characteristics are y

Keith_Richards [23]

Answer:

Ke = Rf + β(Rm – Rf)

ke = 2.2 + 1.32 (10.6 - 2.2)

Ke = 2.2 + 1.32(8.4)

ke = 2.2 + 11.088

ke = 13.288%

kp = D/Po

kp = $5.50/$64

Kp = 0.0859375 = 8.59375%

Kd = 6.7%

Kd after tax = 6.7(1-0.21) = 5.293

WACC = Ke(E/V) + kp(P/V) Kd(D/V)(1-T)

WACC = 13.288(3,075,000/12,419,500) + 8.59375(3,072,000/12,419500) + 5.293(6,272,500/12,419,500)

WACC = 3.29 + 2.126 + 2.6732

WACC = 8.09%

The correct answer is B

Market value of the company: $

Market value of equity = 75,000 x $41 = 3,075,000

Market value of preferred stock = 48,000 x $64 = 3.072,000

Market value of debt = 6500 x $96.5 = 6,272, 500

Market value of the company 12,419,500

The correct answer is B

Explanation:

In this question, we need to calculate cost of equity based on capital asset pricing model. Then, we will calculate cost of preferred stock as shown above. Thereafter, the after-tax cost of debt will be computed as illustrated above. We also need to calculate the market value of the company. Finally, we will calculate weighted average cost of capital as computed above.

4 0

4 years ago