Given that a breakeven sales level is not a sales prediction, explain why it is so widely used in business situations where accurate sales predictions would be helpful.

Q: What does a high ratio in Creditors Turnover Ratio indicate? a. Company is delaying the payment to…

A: Creditors Turnover Ratio measures how fast a company is paying off its creditors.

Q: Which factors are not covered in Peters' analysis?

A: Customer growth stems from when customer-centric companies use successful customer engagement…

Q: The current ratio and the quick or acid-test ratio may be too high for the overall good of the…

A: The current ratio and the quick ratio are a measure of the liquidity of the company. The current…

Q: 'Market structures are often criticised for being too unrealistic in their assumptions of how firms…

A: Answer:-  Market structure meaning:- In economics, the market structure describes how the businesses…

Q: The weak-form of EMH implies which of the following may be used to earn an abnormal return and beat…

A: Weak form efficiency is the first level of market efficiency under the efficient market hypothesis.

Q: The break-even point is the sales level at which a company neither earns a profit nor incurs a loss…

A: The break even sales units are calculated as fixed cost divided by contribution margin per unit.

Q: Which is CORRECT about information asymmetry and adverse selection Information asymmetry refers to…

A: While making transaction both the parties have rights to have proper knowledge of the product. If…

Q: The company manager (retail industry) stated that the company could lower its operating leverage by…

A: The operating leverage is result from the existence of fixed costs that the firm must pay to…

Q: 5.       Evaluate the following statement: The Internet makes price information more accessible and…

A: The internet and application on various platforms have created an avenue for the investor to have…

Q: Identify which of the statements below are true (T) or false (F). Lean businesses aim to: Reduce…

A: Lean businesses aim to: Reduce inventory levels--true

Q: Which of the following is NOT something that is needed for a market to be efficient? A. A large…

A: Market efficiency means stock markets are operating smoothly such that there are no chances that…

Q: - A seller in a perfectly competitive market can increase his profit in the short run by: (a)…

A: A perfectly competitive market is the theoretical market structure where all firms sell similar…

Q: The margin of safety is the amount that sales can drop before the company incurs a loss True False

A: Margin of safety = Actual sales - Break-even sales

Q: In general, it's better to have a low inventory turnover ratio than a high one, as a low ratio…

A: The financial ratios refer to the ratios that are calculated using the financial data from the…

Q: With the aid of computer software, managers can vary assumptions regarding selling prices, costs,…

A: Sensitivity analysis is a type of financial model that estimates or determines how output is changed…

Q: Which of the following statements about close buyer-seller relationships in business markets is…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: How would your error affect breakeven sales and operating income under the proposed sales commission…

A: Affect of error on break-even sales and operating income:

Q: What does a low ratio in Creditors Turnover Ratio indicate? a. Company collects the money fast from…

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: Which of the followings is/are drawbacks associated with valuation by comparables with P/S or P/E?…

A: If the the earnings are negetive, then value would also be negetive, which is not possible.  If…

Q: sales mix and break-even sales?

A: Given in the question: Fixed Costs  $3,30,330.00 Combined Contribution Margin…

Q: Companies have found that offering discounts to customers in return for early payment can be…

A: Inventory management is an integral part of working capital management. Inventory is a crucial…

Q: Sales tases tend to be regressive, that is why food, medicine are often escluded. True False

A: A regressive tax is charged uniformly from all income groups. The sales tax is a kind of regressive…

Q: Inflation accounting is favored by modern financial analysts over the historical cost accounting as…

A: Following are the disadvantages of historical cost accounting in comparison with inflation…

Q: What is an aging schedule? What can be learned from it? How is itaffected by sales fluctuations?

A: Aging schedule is a statement which shows the time taken to recover their receivable and for…

Q: Budgets are useful only for small companies that can estimate sales with accuracy. Do you agree with…

A: Budget- it is the forecast of revenue of revenue and expenses over a specified future period.…

Q: Efficient customer service could be achieved through avoiding stock outs by making accurate   A.…

A: Stock Out: The simple meaning is: When there is a demand in market for the product but the company…

Q: Among the simple average pricing and weighted average pricing method. Which of the store ledger…

A: Simple Average Pricing method considers the average prices by taking only the prices and averaging…

Q: Identify which of the statements below are true (T) or false (F). Lean businesses aim to: Reduce…

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: A firm that uses LIFO accounting for inventory in times of rising investory costs will always report…

A: FIFO First in first out method is a method of inventory accounting wherein the units of goods…

Q: A seller in a perfectly competitive market can increase his profit in the short run by: (a)…

A: While considering perfectly competitive market, all the companies vend same kinds of products and…

Q: Profit maximization pupose cannot be an ideal basis for making business decision because of…

A: Profit maximization cannot be an ideal basis for making business decision because It focuses only on…

Q: Why would a company’s manager be concerned about the quantity of its purchases returns if its…

A: Purchase returns means return of merchandise to the suppliers or vendors due to low quality or any…

Q: Explain how a shift in the sales mix could result in both a higher break-even point and a lower…

A: Sales mix involves the composition of different products and some products have a higher margin of…

Q: Explain why rewarding sales personnel on the basisof total sales might not be in the best interests…

A: The main goal of the business is to earn huge profits and maximize their returns in the long run.…

Q: Th e Industry and Business Risk excerpt states that, “Increased competition may lead tolower unit…

A: If prices are decreased, write downs under FIFO are least probably to have a considerable impact as…

Q: answer these question in just two sentences. a..“If a firm sold some inventory on credit, its…

A: The financial ratios refer to the ratios that are calculated using the financial data from the…

Q: What are the main hindrances in valuation estimates in business valuati

A: Knowing how much an asset is worth and what factors influence its value is essential for making…