SG&A is an initialism used in accounting to refer to Selling, General and Administrative Expenses, which is a major non-production cost presented in an income statement.
Indirect costs are costs that are not directly accountable to a cost object. Indirect costs may be either fixed or variable. Indirect costs include administration, personnel and security costs. These are those costs which are not directly related to production. Some indirect costs may be overhead.
Answer:
Explanation:
Suggestive selling is when someone recommends a better version of the product which you are purchasing or even recommends another totally different product that may suit your individual needs better. Almost everyone has experienced this in some capacity before. For example, any time you go to a fast-food chain they always ask if you would like to increase the size of your order (super-size) for a small additional fee. This is suggestive up-selling, and companies do this because they make additional profit from these items that they are suggesting.
Answer:
D) return on equity will increase.
Explanation: Return on equity is a financial term that explains the net income of a business venture. There are several ways through which the return on equity can be improved or increased in business.
(1) Reduction in the cost of operations or production of goods and services
(2) increase in the price of the product etc.
If the cost of producing a given Quantity of goods is reduced with sales remaining constant,THE RETURN ON EQUITY WILL INCREASE AS A RESULT OF THE INCREASE IN NET INCOME DUE TO REDUCED COST OF OPERATIONS OR PRODUCTION OF GOODS.
Answer:
Law of tort
Explanation:
A tort can be basically described as an act or omission, which gives rise to an injury or harm, that could results into a civil wrong that could warrant a liability.
A tort can exist in 3 forms;
1. Negligence
2. Intentional torts, and
3. Strict liability.
The scenario under study here is a clear case of negligence. Here, the bank opined that there is deliberate and deceitful representation of the financial statement. Luca, the accountant, acknowledged that he was negligent in the preparation of this financial statements. The rule that governs this borders on negligence, and thus laws of tort comes handy in addressing this.
