" The sale forecast is the cornerstone for profit planning," why?

Q: What is the profitability index? When is it used?

A: Capital investment analysis: Capital investment analysis is the process by which management plans,…

Q: What is the Economic Value Added (EVA) method? Provide a definition, state a formula, and define all…

A: Economic Value Added (EVA): EVA also called economic profit is a measure of the financial…

Q: For technical analysis, based on patterns of historical prices, to have value, ______ form of market…

A: Weak form efficiency market hypothesis is an element of efficient market hypothesis which states…

Q: How to correctly find the operating profit? Show an example please.

A: The calculation of operating profit is an important aspect of understanding the financial position…

Q: How would you define profit planning? What is the importance of profit planning?

A: a) Profit planning is a progression of steps being taken to arrive at an ideal level of profit. Such…

Q: The hypothesis that market prices reflect all publicly-available information is called efficiency in…

A: Efficiency of stock market is determined by the effect of information whether publicly available or…

Q: Define the term profitability index?

A:

Q: Explain in details what is SWOT analysis. Do SWOT (Strength, Weaknesses, Opportunities, Threats)…

A: SWOT Analysis is basically a parameter by which an organization can judge what is its Competitive…

Q: How to calculate the Profitability index?

A: Profitability Index: It is a measure used in capital budgeting of the project's or investment's…

Q: If you are to choose between viability and profitability, which one would you choose? Why?

A: A company's viability indicates that it is (or has the potential to be) profitable. A profitable…

Q: how present value is useful in economic decision making

A: Present value (PV) is the current value of a future sum of money or a stream of cash flows, given a…

Q: What methods could be used in profit planning?

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What are the optimal prices and profits for selling the goods seperately?

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: What questions should managers answer when considering selling a product as is or processing…

A: Sell or process further decision rule: Sell or process further decision rule states that "if the…

Q: What are the benefits of Profitability Analysis?

A: Profitability analysis is a tool used by the firm to analyze cost and revenue to know whether the…

Q: Why is profitability analysis necessary, with a particular emphasis on return on investment? When…

A: Profitability is a phrase that relates to the metric used to quantify earnings. Profitability…

Q: Why is an accurate sales forecast critical for financial planning?

A: Financial planning is the process of deciding how a company can achieve its goals & objectives.…

Q: What is market efficiency? Differentiate between weak and semi strong form efficiency

A: Market efficiency is the ability of markets to process the information quickly and generate the…

Q: What does the usage of technical analysis mean for the theory of market efficiency?

A: Market efficiency:- Market is said to be ‘efficient’ only if the price of every security in the…

Q: Explain profitability index

A: Profitability index is a financial tool which tells us whether an investment should be accepted or…

Q: What are the basic steps that you must take to determine if you are able tomake a profit?

A: Profitability is a basic need and objective of every business. If company can able to make the…

Q: What is target profit?

A: Target costing:   Target costing is a business procedure that targets the cost at the earliest…

Q: What is Profitability analysis?

A: Profitability analysis is an important measure for the business to analyze the company's ability in…

Q: Determine which of the following two alternatives is the most efficient and which is the most…

A: Internal Rate of Return: It is the rate at which a project's or investment's net present value…

Q: What is the relationship between profit and ethics?

A: Every business entity who is operating whether it is manufacturing business or service company want…

Q: What is Transfer Pricing? What are the approaches in determining transfer prices? In your own…

A: Explanation of transfer pricing and approaches determining transfer pricing are as follows.

Q: What is the relationship between NPV and profitability index (PI)?

A: The concept of net present value is used to decide whether to invest in an investment or not. It is…

Q: return

A: The term profitability refers to metric which is used to measure profits. An analysis is made on how…

Q: Build an influence diagram that illustrates how to calculate profit.

A: Profit : Every business motive is to earn profit.  Profit is generally earned when the business…

Q: Give some examples of market value analysis?

A: Market value is a strong shareholder richness measuring stick. And besides, what depends is what the…

Q: profit margin

A: Profit margin = Net income * 100/Revenue

Q: Does the Profitability Analysis play an important role in decision making? How?

A: Yes, Profitability analysis helps the decision-maker in making decisions as it helps in the…

Q: structured

A: Structured products are well before assets that often incorporate equity assets as well as one or…

Q: What would marketers like consumers to do whendissatisfied? How can marketers encourage this?

A: Marketers are those people who form and execute marketing strategies and decisions related to it to…

Q: What is a profit-sharing plan

A: A profit-sharing plan is also known as DPSP (Deferred profit-sharing plan).

Q: What is the Profitability Index?

A: Capital budgeting is the technique of evaluating a project which requires an initial capital…