When might a reduction in operating expense as a percentage of sale denote a short term gain or the cost of long term performance?

Q: How do you calculate Fixed Asset Turnover? What is the Free Cash Flow Ratio? What is the difference…

A: The answers for the questions on accounting ratios are discussed hereunder : Fixed Assets turn over…

Q: Which of the following are inversely related to increases in a firm's current assets?I. Reorder…

A: A firms current asset increases when there is substantial increase in the current asset than the…

Q: If the sale price executes at the price you specified, what would be the total loss, excluding…

A: Sales price when executed at the price specified will be equal to the breakeven price.  Break even…

Q: Contrast the effects that LIFO vs. FIFO would have on ending inventory, net income and cash flow in…

A: Under LIFO(Last in first out) method: Inventory is valued at using the costs incurred for the…

Q: Explain what effect will an upward asset revaluation have on subsequent periods’ profits

A: The revaluation of assets means the change in the value of assets over a period of time this made…

Q: During a period of steadily increasing purchase costs, whichinventory flow assumption results in the…

A: FIFO method (Firstt in First Out method) : Under this method, the inventory issues will be recorded…

Q: When net profit margin is low, must be high in order to achieve on acceptable return on assets.*

A: In accounting we know that ROA = net income/total assets

Q: The ratio which indicates the profit that a company makes after paying variable costs of production…

A: Variable costs are those costs which changes with change in level of activity like all operating…

Q: Whats is the effect of increasing the asset turnover (ATO) on enterprise price-to-book value,…

A: Asset turnover ratio is The asset turnover ratio measures the value of a company's sales or…

Q: How are the floor and ceiling limits calculated as per the lower of cost or market (LCM) method…

A: LCM that is lower of cost or market value method says that inventory should be valued at a price…

Q: Profit on sale of fixed assets is [A] non trading income [B] operating income [C] non trading gains…

A:

Q: How is can CAPM, Sharpe ratio, Treynor measures and Jensen’s Alpha be used to maintain positive…

A: The performance of portfolio or investment should not evaluated only using the return of portfolio…

Q: Why would reclassifying period costs as product costs increase this period’s reported earnings?

A:

Q: What is the most likely impact on return on equity of an increase in operating expense margin, all…

A: Operating expenses are required to run the business. AN increase in operating expenses reduces the…

Q: Which of the following would be considered as a limiting factor to maximize the profit? O a. Book…

A: Limiting factors can be defined as the constraints in availability of production resources in order…

Q: Does an increase in the operating profitability ratio always causean increase in the value of…

A: Answer: Usually, company’s operating profitability ratio’s measure how far management will strive to…

Q: Will the profit calculated on the absorption cost basis be higher or lower than the profit…

A: The key difference in profit under marginal costing and absorption costing technique comes because…

Q: Inflation affects the historical cost of an asset over time. TRUE OR FALSE.

A: Concept of historical cost of an Assets Historical cost of an assets refers to the cost at which an…

Q: Profit on sale of fixed assets arises when: Sale price is more than the original purchase value of…

A: Profit on the sale of fixed assets arises when the book value of the asset is less than the selling…

Q: A decrease in Selling and Administrative Expenses woulddirectly impact what ratio?a. Fixed asset…

A: Answer:

Q: Which items comprise operating current assets? Why is itreasonable to assume that they grow…

A: Operating current assets are the short-term assets utilized to promote a business's processes

Q: Let P(x) be the annual profit for a certain product, where x is the amount of money spent on…

A: Solution- (A)  P(o) represents the amount of annual profit allocated when x=0 or when no money was…

Q: Describe the specific process required by the unit cost comparison for the use of annual worth…

A: A unit cost comparison is required for the use of annual worth analysis because companies often…

Q: If an asset increases in value, the increase is noted as________. Select one: a. an increase in net…

A: An increase in value of an asset can be result of revaluation gain on asset or reversal of…

Q: What is the gross profit declined due to increase in cost in the amount?

A: Gross profit refers to the profit calculated after considering the costs associated with the…

Q: How can we calculate ownership (capital) cost, annual operating cost, and equivalent annual cost?

A: Ownership cost is the cost of owning a particular asset/equipment and is usually the purchase price…

Q: Depreciation can be defined as the measure of cost or revalued amount of economic benefits of a…

A: Depreciation can also be defined as: It records the usage of a fixed asset over a period of time and…

Q: Which of the following is correct about "Cost", "Expense", and "Loss" concepts? Select one: a.…

A: Income statement is one of the significant financial statements and the two components of this…

Q: the equation for book value is: book value = cost of an asset minus its accumulated depreciation.…

A: Asset: Asset is a resource owned by a company from which future economic benefits are expected to…

Q: The increase (decrease) in gross profit due to change in overall quantity sold is:

A: As the student has asked specific question so we are answering that question only.

Q: the best technique to use in valuing a tangible loss is: A) A replacement cost B) Market Values C)…

A: Tangible loss means the direct loss of money or property such as lost wages etc.

Q: Will the carrying value of a long-term asset be equivalent to its market value under typical…

A: Here is the Answer

Q: If inventory is being valued at cost and the price level is steadily rising, which of the three…

A: Introduction:

Q: What are some pros and cons of holding high levels of current assets in relation to sales? Use the…

A: The DuPont equation depicts the return on equity for a firm taking into consideration the firm’s…

Q: What do you understand by Capital cost Allowances (CCA)? What is accelerated CCA? Also, can you…

A: Capital cost allowance   A capital cost allowance is a form of depreciation of a capital asset used…

Q: Under IFRS, the initial revaluation of equipment when book value exceeds fair value results in a. An…

A: As per International Financial Reporting Standards (IFRS), the company values the property, plant…

Q: pletable amount by the estimated life in terms of units of output?

A: Depletable amount refers to the amount left after salvage value from the total cost of an intangible…

Q: Why is the original cost estimate corrected based on buyout data?

A: Buyout process :              When a company acquires the controlling interest in another company,…

Q: Change in operating income = change in sales dollars x contribution margin What is the equation for…

A: The Sales, Contribution Margin, Variable costs are the components of CVP Analysis. The analysis is…

Q: t the contribution margin and net operating income?

A: Contribution Margin: Contribution margin refers to the contribution earned by the company from the…

Q: What is the difference between the cost of a fixed asset and its accumulated depreciation called?…

A: Accumulated depreciation is the total of all the depreciation that has been charged to the asset…

Q: Which of the following is not an asset utilization ratio

A: Asset Utilization Ratio: This ratio computes the total sales/revenue earned for every dollar of…