Answer:
5. They are all neccessary
Answer: Please refer to Explanation
Explanation:
To make your question clearer, I have attached a table that demarcates the figures.
Series 1 are FIXED COSTS. Fixed costs do not change over the production process and are not dependent on the level of production. Even if you were not producing anything you would still be accruing fixed costs. Notice how the cost stays at $450 throughout even when no production was being done. It is a fixed cost.
Series 2 is a VARIABLE COST. Variable costs change as production takes place. They rise as more goods are produced and usually do so at a steady rate. Variable costs are not incurred when production is not going on. Notice in Series 2 how there was no cost at 0 units but as soon as production started the costs started increasing at a steady rate of 800 per hundred units.
Series 3 is what we call STEP-WISE COST. It gets it's name from the fact that it looks like a step when graphed. Why?
These costs stay stable for a certain amount of production and then change depending on if production increases or decreases. Notice how from 0 units to 200 units it stayed the same and then increased and stayed the same again.
I have attached a sample of step wise costs.
Series 4 is what we call CURVILINEAR COST. They are the confused guys so to speak because they increase at an irregular rate as production rises. Notice how it increased by 5 and then by 15 and then by 25. Irregular rate rise. I have also attached a sample of this when it is graphed.
Thanks all I have for today. Thank you for coming to my Ted Talk. If you need any clarification do comment.
Answer:
d. Products sold by a firm.
Explanation:
Combination of products sold in relation to total products sold by the firm.
A firm can have any number of products and the proportion of each product in relation to the total number of units sold of all products together is the sales mix. For example a firm with 2 products sells P1 4000 units and P2 6000 units the sales mix then would be P1 40% and P2 60%. Therefor option D) is the right choice and accurate definition of a sales mix.
Hope that helps.
Fixed deposit account. Savings account.
Answer:
Option B,
The higher the degree of financial leverage employed by a firm, THE HIGHER THE PROBABILITY THAT THE FIRM WILL ENCOUNTER FINANCIAL DISTRESS.
Explanation:
The degree of financial leverage (DFL) is a leverage ratio that measures the sensitivity of a company's earnings per share to fluctuations in it's operating income, as a result of changes in its capital structure.
This ratio indicates that the higher the degree of financial leverage, the more volatile earnings will be.
The use of financial leverage varies greatly by industry and by the business sector. There are many industry sectors in which companies operate with a high degree of financial leverage (examples are retail stores, grocery store, banking institutions, airlines...). Unfortunately, the excessive use of financial leverage by many companies in this sector has played a major role in forcing a lot of them to file for bankruptcy.
Therefore, if the degree of financial leverage employed by a firm is high, then the probability that the firm will encounter financial distress will also be high.