What is the explanation for the mechanics of compounding?

Q: Give an example of mechanics of compounding.

A: Suppose principal amount is $20,000.Interest rate is 7% compounded annually.

Q: What is operating break-even point?

A: It is point where, company has no profit no loss. At break-even point all fixed costs are recovered.

Q: What will be the Effective Cost of Refinancing?

A: The term refinancing is related to mortgage refinancing, is a system that assists mortgage holders…

Q: What is a breakeven point? Give an example?

A: Break-Even Point: Break-even point is a point of sales where company can cover all its variable and…

Q: What are the important feature of a perpetual system?

A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…

Q: What is the Compound-Amount Factor?

A: Compound amount factors are the factors by which the interest for a loan is calculated which is…

Q: Which of the two machines should be installed?

A: Probability for installing two machines will be: = Probability×Returns(1+risk free rate)Time

Q: Define the term Continuous Compounding?

A: Continuous compounding is as far as possible which accumulating funds can surpass in the event that…

Q: Define the term materiality concept.

A: Accounting concept:   They are the basic rules and assumptions that forms the base for recording the…

Q: Explain the assumptions of break-even analysis.

A: Break-even analysis - - Break-even analysis states that a number of units must be sold to cover the…

Q: What are the requirements of Continuous Compounding?

A: The question is based on the concept compounding of interest rate.

Q: What is the purpose of physical contols

A: Physical controls are basically to safeguard the assets of the entity which are highly valuable. It…

Q: Explain how to calculate breakeven point.

A: Break even point is a point of business where the sales cover both variable and fixed costs.

Q: Define compounding

A: A compounding is the interest charged on interest. When any investment is made for certain years,…

Q: What is Continuous Compounding?

A: Continuous compounding: Continuous compounding is a kind of compounding countless number of times in…

Q: Explain how to determine the break-even point

A: Break-even: It can be defined as that level of production at which the firm’s total costs fall…

Q: What does the Equipment Replacement decision involve?

A:

Q: What is a break-even point and how is it calculated?

A: Break-even point: Break-even point is defined as a situation where a firm’s expenses and revenues…

Q: What is the best measure of dispersion

A: As per general understanding -   Best method/ measure of dispersion is Standard deviation

Q: What is the equipment replacement?

A: Under replacement, one is focused with equipment and machinery that worsens with the passage of…

Q: How is RI calculated?

A:

Q: Describe how to calculate aproduct’s break-even point

A: Break-even point is a stage where a company is in state of no profit or no loss. Break-even point…

Q: What is Discrete Compounding?

A: Answer: Discrete compounding is nothing but a process by which value is measured at some fixed…

Q: How can we determine a Compounding Period?

A: A compounding is the interest charged on interest. When any investment is made for certain years,…

Q: What is the meaning of break-even point?

A: Break-Even Sales: Sales volume required to cover the fixed and variable costs and left out with…

Q: What is a possibe break-even point scenario in the resturant indurstry?

A: Break-even point is the point wherein revenues equals expenses or contribution equals fixed costs.…

Q: One should be aware of which four basic components of the compounding problem?

A: The four basic components for solving a compounding problem are given below: Principal Amount…

Q: What does "Flat Compounding" mean?

A: According to the definition of ISDA; Flat compounding is the floating rate but treating the spread…

Q: What are favorable direct materials? Give an example?

A:

Q: Explain the process of Equivalence Calculations with Continuous Compounding?

A: Equivalence calculation is that calculation which gives the fix return surety in future in any…

Q: perating cycle?

A: Definition: Operating cycle: Days by which, a business can be able receive inventory or sell it or…

Q: How can spooling present an added exposure?

A:

Q: Define the term Force account?

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: What are two approaches to conceptual systems design?

A: Conceptual Design:   Conceptual design is that structure which provides various conceptual system…

Q: What is the OLAP operation of drill-down?

A:

Q: Which of the following defines iterative calculation?

A: SPREADSHEET

Q: What are the effects of more frequent compounding?

A: Compound interest - In this method, the interest is calculated on the balance at the end of each…

Q: What is compounding frequency?

A: Compound interest - In this method, the interest is calculated on the balance at the end of each…

Q: What is asset specificity?

A: It is a term which is specially used to depict the inter party relationships amongst transactions

Q: What is the most effective way of determining the break-even point?

A: Break even point means a point where firm is neither earning profit nor incurring any loss.

Q: Define Securitization.

A: