What is operating leverage, and for what is it used?

Q: How is a gain contingency reported?

A: Gain contingencies: The excess of book value over the amount to be received is actually gain…

Q: What's the related cost of implementing database system?

A: This question explains about  the related cost of implementing database system.

Q: What are the advantages and disadvantages of  FIFO?

A: First-in-First-Out:  In First-in-First-Out method, the costs of the initially purchased items are…

Q: What are the differences between a centralized and decentralized network?

A: Social Network- The term "social network" refers to internet-based networking with friends, family,…

Q: What is FASB and where does it get its power?

A: FASB:  FASB is also called a Financial accounting standards board setup to provide standards and…

Q: What are value drivers?

A: Answer: The basic determinants of the cash flows of a project or primary factors in project…

Q: Describe resource dependency theory

A: Resource dependency theory is an important theory in Sociology. This theory helps to study the…

Q: Explain the benefits of supply-chain analysis.

A: In supply chain analysis, every stage of a supply chain that includes the purchase of raw material,…

Q: How are gain contingencies recorded?

A: Introduction Gain Contigencies are the uncertain events that result in gain. The gain is purely…

Q: What are the main costs and limitations of implementing ABC systems?

A: Activity Based Costing: Activity based costing is one of the methods of costing to identify the…

Q: Define the term leverage. And method of computing degree of leverage.

A: Financial Accounting:- The term financial accounting includes recording, summarizing and reporting…

Q: Explain types of Properties?

A: Tangible Property: This type of properties alludes to a property that can for the most part be…

Q: Define degree of operating leverage (DOL)

A: Degree of Operating Leverage (DOL): Degree of Operating Leverage (DOL) is a ratio of leverage that…

Q: What is a value stream map?

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

Q: What is the efficient frontier?

A: The term efficient frontier is used in relation to professor Harry Markowitz's Modern Portfolio…

Q: What are input flexibility options and output flexibility options?

A: The question is based on the concept of production process. The managers can use variation in Input…

Q: What is a constraint?

A: Internal Control:   It refers to a set of rules, policies adopted by a business to ensure accuracy…

Q: What is value-based management and how is it used?

A: The company finds the value of the company by discounting the cash flows occurring in the future.…

Q: What is bolt-on software?

A: Software:   Software can be defined as a set of data, programs, and instructions that are used to…

Q: Explain this statement: “Using leverage has both good and badeffects.”

A: Financial leverage is said to be made when company uses borrowed capital instead of own capital for…

Q: What are the advantages and disadvantages of  LIFO?

A: Last-in-First-Out: In Last-in-First Out method, the costs of last purchased items are considered as…

Q: What are the examples of gain contingency?

A: A gain contingency is a uncertain future event which results in economic inflow to a entity, it is…

Q: How is RI calculated?

A:

Q: Define operating leverage with examples and why it is potentially risky.?

A: Operating leverage is used to measure a company’s fixed costs as a percentage of its total costs. A…

Q: What is GAAP and why it is needed?

A: GAAP - Generally Accepted Accounting Principles

Q: What is scalability?

A:

Q: What is flexibility option?

A: A financial instrument that provides the opportunity to the buyer and seller to purchase and sell…

Q: What is the DCF method?

A: DCF is a complex tool for valuation which approximates the value of any investment depending upon…

Q: What properties should transfer-pricing systems have?

A:

Q: What is an LBO?

A: Leveraged buyout (LBO): It is another firm's takeover, employing a huge sum of borrowed capital to…

Q: What is a CMO?

A: A collateralize mortgage obligation (CMO) refers to a type of mortgage-backed security that contains…

Q: Define the term Gain Contingencies.

A:

Q: What exactly are the advantages and disadvantages of turnkey systems?

A: Here are the advantages and disadvantages of turnkey systems:

Q: What is lead underwriter?

A: Underwriting is a process through which securities of company sale by third party in the market.…

Q: What is operating leverage? Give three examples?

A: Operating leverage:

Q: What are the major inputs to the MRP system?

A: The preparation of material requirements planning (MRP) is a method for measuring the materials and…

Q: What does operating leverage measure, and how is it computed?

A: Operating leverage is a price metric that measures how much a firm or project can increase…

Q: What is task-data dependency?

A: The lack of ability of a user to get additional data when their requirements fluctuate is known as…

Q: What does Security Market Line Capture?

A: Security market line (SML) is a straight line sloping upward depicting an expected rate of return as…

Q: How can thepayback method be useful?

A: Meaning:   The payback period is the time required to earn back the amount invested in a…

Q: What are the strengths and weaknesses of infrastructure as an asset class?

A: Infrastructure as an asset is an investment in services, installations, and facilities. There are…

Q: What is asset specificity?

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