Answer: not affecting the manager's bonus
Explanation:
Under Variable costing, fixed manufacturing overhead is not charged on inventories produced or not sold for the year which means that regardless of inventory level, the relevant inventory here when it comes to calculating operating profit is the one that was sold.
The manager's bonus will therefore not change as a result of higher inventory levels. Were this absorption costing where fixed overhead was charged to inventory that was not sold, the manager's bonus would increase because the higher inventory level would absorb more of the cost.
Answer:
≅ 21.8%
Explanation:
The Return on Equity can be calculated by ,
ROE = Net Profit Margin × Return asset × Financial leverage
Net profit margin = Profit margin = 12%
Return Asset = Total Asset turnover = 1.4
Financial leverage = Equity Multiplier = 1.3
Therefore,
ROE = 12 × 1.4 × 1.3
= 21.84% .
Answer:
A. Enters a national market after several other foreign firms have already done so.
Answer:
a. False
Explanation:
A "primary transaction" refers to the selling of <em>new stocks and bonds</em> for the first time towards the public. A great example of this is the "Initial Public Offering" <em>(IPO)</em> which allows "public share issuance."
On the other hand, a "secondary transaction" refers to the<em> trading of investors among themselves.</em> There is no involvement of the issuing companies here. So, this means that if an investor uses the services of a broker to buy and sell stocks that are currently being traded in the stock market,<u> the transaction</u><u> doesn't directly involve the issuing compan</u><u>y.</u> This kind of transaction is then called "secondary."
So, this explains the answer.
Answer:
It should listen to his mother.
Explanation:
This week cash flow handled the fixed cost of 10 to Raymond's brother.
His father is not considering that so it thinks the business flops.
Now that fixed cost are paid the following weeks his gains will increase entirely based on the sales volume so, it is better to continue the business for the next three weeks.