The second manager makes better decision amongst the two managers
Explanation:
Inventory refers to that part of the final goods or the products that have remained unsold for the current period. Generally, Inventory is associated with liability in the long term since they are associated with storage surcharges and obsolescence threats.
Amongst the two managers, the second manager is more capable of making a better decision since his decisions led to just 20% of the net produced goods to turn inventory which remains advantageous for the company. Whereas for the first manager, 80% of the items remain as inventory. Hence more risk and greater storage surcharges for the firm
Answer:
The correct answer is B
Explanation:
The contingency is the plan, which is course of action for the business that would take if an unexpected situation occur. So, the contingency plan is the plan or method which ensures that the business is prepared for what may come.
Accrual for contingency, it is the information which is available previously to issuance of the financial statements that indicates the assets has been impaired and the loss amount could be reasonably estimated.
The one which is most likely need the accrual is the customer premium offers as it is the technique of sales promotion where the customers are provided two or more products and they pay the price lower of the combined products.
Answer:
Nepal
70 years
Kenya
47 years
Singapore
10 years
Egypt
21 years
Explanation:
Suppose
Time period = X
Per capita Income = $1
Using following formula calculate time period to double the per capital Income
FV = PV ( 1 + g)^n
Nepal
g = 1%
2 x $1 = $1 ( 1 + 0.01)^n
$2 / $1 = 1.01^n
$2 = 1.01^n
Log 2 = n Log 1.01
log 2 / log 1.01 = n
n = 69.66 years = 70 years
Kenya
g = 1.6%
2 x $1 = $1 ( 1 + 0.016)^n
$2 / $1 = 1.016^n
$2 = 1.016^n
Log 2 = n Log 1.016
log 2 / log 1.016 = n
n = 43.66 years = 47 years
Singapore
g = 7.3%
2 x $1 = $1 ( 1 + 0.073)^n
$2 / $1 = 1.073^n
$2 = 1.073^n
Log 2 = n Log 1.073
log 2 / log 1.073 = n
n = 9.84 years = 10 years
Egypt
g = 3.4%
2 x $1 = $1 ( 1 + 0.034)^n
$2 / $1 = 1.034^n
$2 = 1.034^n
Log 2 = n Log 1.034
log 2 / log 1.034 = n
n = 20.73 years = 21 years
Answer:
Question 1
The building will depreciate by 10% in one year so in one year you will only be able to sell it for:
= 200,000 * ( 1 - 10%)
= $180,000
Question 2.
A. Your bookkeeper is right, because the extra income you will earn will be less than the cost of owning the building for the year.
If you buy the building, you will have to pay back $200,000 in a year.
However, you will only be able to sell the building for $180,000 and you will receive an income of $12,000 for a total of:
= 180,000 + 18,000
= $192,000
This is $8,000 less than the $200,000 you borrowed so you will pay back more than you borrowed.
Question 3
A. Holding onto your $200,000 in cash.
Holding your cash is the best option because investing in the building would lead to a loss of $8,000 after a year.
The bank would also reduce your balance by 1%. It is therefore best to hold the money.
Question 4
A. False
Companies with cash still have to make decisions based on gains and they will stand to gain more if they deposited their money because this would give them more interest profits.
Answer:
The correct answer is competitive intelligence.
Explanation:
Competitive intelligence is the systematic collection of open information, which once combined and analyzed provides a better understanding of the structure, culture, behavior, capabilities, and weaknesses of a competitor's firm.
It is a very important activity because it helps companies to better understand how the business works. This way you can learn to be better than your competitors.
Companies use competitive intelligence to compare themselves with others, allowing them to make informed decisions. Most firms today realize the importance of knowing what their competitors are doing, and the information collected allows organizations to find out about their strengths and weaknesses.