When the cost of inventory is rising, which inventory cost flow method will produce the lowest amount of cost of goods sold is FIFO.
FIFO follows the natural glide of inventory (the oldest products are offered first, with accounting going by using the ones charged first). This makes bookkeeping easier with less danger of errors. less waste (an organization in reality following the FIFO approach will usually be shifting out the oldest stock first).
FIFO makes a specialty of the use of up antique inventory first, at the same time as LIFO uses the newest inventory available. LIFO helps preserve tax bills down, but FIFO is plenty less complex and easier to paint with. however, it's far all down to the organization you own as to what technique you pick.
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a business philosophy that suggests that local point of a business strategy must be customers in intends to serve is called
The advantages that a company's goods and services will provide to their clients are distinctly stated in a value proposition.
What is value proposition?The advantages that a company's goods and services will provide to their clients are distinctly stated in a value proposition.In the marketplace and among a target market or target audience, a well-crafted value proposition will set apart the company and/or its particular product or service.A corporation should use its value proposition statement as an opportunity to explain to customers why the business, its product, or its service is the best one to purchase. In a nutshell, it explains how the business can best satisfy the client's wants or address their issues.This should be accomplished by the value proposition in an accessible, succinct manner that clients will remember.As a result, a value proposition should be viewed as a strategy for attracting customers, retaining their business, positioning the business in the industry, increasing sales, and ultimately gaining a competitive edge.According to a 1988 staff document for the consulting company McKinsey & Co., Michael Lanning and Edward Michaels are credited for coining the term "value proposition." The writers of the essay "A business is a value delivery system" define a value proposition as "a clear, basic statement of the benefits, both tangible and intangible, that the company will provide, coupled with the approximate price it will charge each client segment for those services."To Learn more About value proposition refer To:
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a country in which a multinational company conducts business activities is called the:____.
Host country refers to the nation in which a multinational corporation operates its business.
A nation where a big international event is hosted is referred to as the host country. In this year's conference, Chile will serve as the host nation. a nation where immigrants want to settle.
Many immigrants have a difficult time assimilating into their new society. The term "home country" refers to the place a person was born and raised, whereas the term "host nation" denotes the place where an immigrant is currently residing.
A corporation with operations in another country is said to be operating in a host country. The corporation can easily relocate its operations to another nation if production costs increase in the host nation.
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n international manager can best develop an understanding of a particular culture by . a. creating a cultural profile for that country or region in which the firm does business b. assuming that his or her own cultural styles and practices can be successfully followed in the host country c. using stereotypes to develop cross-cultural understanding in a business setting d. hiring locals rather than expatriates for management positions in overseas subsidiaries
Constructing a cultural profile for the nation or area where the company operates
Explain about the international manager?The global operations of a corporation are managed by international business managers. All of a company's overseas business is within their purview. global marketing, manufacturing abroad, or global sales.
First-line managers, middle managers, top managers, and team leaders are the four most prevalent categories of managers. These positions vary not only in terms of their daily tasks but also in terms of their overall roles within the company and the kinds of workers they supervise.
Foster communication and teamwork in order to foster relationships and understanding among team members, managers should encourage team members to discuss how their cultural differences relate to their job. Putting out cohesive goals is the following phase.
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true or false: research shows that every dollar spent on multisystemic family therapy saves taxpayers five dollars.
Research shows that every dollar spent on multisystemic family therapy saves five dollars this statement is true.
What Is a Taxpayer?Any person or company that must pay taxes to the federal, state, or municipal governments is considered a taxpayer. The majority of a government's income comes from taxes, both on citizens and on enterprises.
Who or what is a taxpayer, and why?The word "taxpayer" comes from a period when buildings were built at a low cost in densely inhabited areas so that property owners could reclaim their property taxes.
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which of the following is mandatory for leed certification question 59 options: a) earning at least 50 points b) meeting all prerequisites c) having a leed ap on the project team d) earning all the regional priority credits
From the following, the one which is mandatory for LEED certification is that meeting all prerequisites.
All LEED projects must be constructed and also operated on a permanent location which is on existing land. So, no project that is designed to move at any point in its lifetime may pursue LEED certification. Thus, this requirement tends to apply to all land within the LEED project.
However, meeting all the prerequisites are mandatory for the certain certification. So, the prerequisites are the requirements which are not optional and thus they have to be in place in order to achieve the required certification.
Hence, option B is correct.
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with a tariff of $10 a blouse on imported silk blouses from china, the revenue the government would collect from the import of silk blouses from china would be:
$7,000 A number of states have a minimum wage that is higher than the federal minimum.
What happens at the equilibrium price?
When the price balances and the quantity provided and demanded are equal, a market is said to be in equilibrium. Price will be forced lower if there is a surplus when it exceeds the level of equilibrium. When the price balances and the quantity provided and demanded are equal, a market is said to be in equilibrium.
How do you calculate import tariff?
Subtract the worth of the items from the freight, insurance, and any other expenditures, then multiply the result by the duty rate. The duty that must be paid to Customs for your cargo is the outcome.
Hence $7,000 is a correct answer.
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Suppose potential income is $60 billion, actual income is $40 billion, and expenditures don't vary with income. If the actual budget deficit is $4 billion and the marginal tax rate is 20 percent, the structural deficit:____A. Is zero. B. Is between zero and $4 billion. C. Is $4 billion. D. Cannot be determined from the given information
Suppose potential income is $60 billion, actual income is $40 billion, and expenditures don't vary with income. If the actual budget deficit is $4 billion and the marginal tax rate is 20 percent, the structural deficit Is zero. The Option A is correct,
What is structural deficit in budget?In budget, a structural deficit occurs when there is an excess of public spending over revenues which would persist if the economy were to grow steadily at its highest sustainable employment rate such as at the same rate as potential output.
Here, if the income increases to $60 billion, tax revenues go up by $4 billion, so the actual deficit is zero at potential income, implying that the structural deficit is also zero.
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a radio station reports that the price of champagne grapes fell by 20% and the price of champagne also fell by 20%. can the market be competitive?
A radio station reports that the price of champagne grapes fell by 20% and the price of champagne also fell by 20% and the market is Competitive.
When Market is Competitive?In response to customer demand for products and services, a competitive market develops. Due to the competition created by this market system, businesses must assess their costs of production, pricing policies, and product output.Perfect competition, as well as competitive markets, aim to factor in both the buyer and the supplier equally and develop strategies based on the market's current supply and demand. We define competitive marketplaces, describe their traits, and explain their functions and distinctions in this article. A market that is totally competitive has many knowledgeable buyers and sellers, no obstacles to entrance, and no potential for monopolies.Among the ten characteristics of a competitive market are profit, diminishing supply, competition, and exclusion.To learn more about market refer to:
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the government passed the cares act to address the economic fallout of the covid-19 pandemic. which of these provisions were included in the legislation?
The government passed a bill called the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020 to calm the economic downturn caused by the global coronavirus pandemic
The CARES ActThis decree is divided into seven main areas, which are the following:
Benefits for individuals: This law authorizes direct payments to families of 1,200 dollars per adult and soften mortgage and rent payments, this legislation required a deadline for foreclosures and evictions. Relief for small businesses: the law protected these companies to maintain their payroll and some general expenses during the emergency. The stated goal was to keep workers paid and employed.The plan boosted payments to providers and health care providers by billion through various programs, including Medicare reimbursements, grants, and other direct federal payments.For more about coronavirus here https://brainly.com/question/24294254
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if the mpc is 0.50 and the equilibrium gdp is $100 billion below the full-employment gdp, then the size of the recessionary expenditure gap is
Correct answer is $50 billion.
Explanation,
Given,
MPC = 0.50
GDP gap = $100 Billion
Therefore the recessionary hole is given by:
Recessionary Gap=(1−MPC)×GDP Gap=(1−0.50)×100=0.50×100=50
That is the dimension of the recessionary hole is $50 Billion.
A recessionary gap, or contractionary gap, occurs when a country's actual GDP is lower than its GDP at full employment. Recessionary gaps shut when actual wages return to equilibrium, and the extent of labor demanded equals the volume supplied.
What is a recessionary hole example?In 2005, the US financial system had a viable GDP of 66.86 billion, whereas its actual GDP was 17.95 billion. Since the potential GPD is greater than the actual GDP, there is a recessionary gap. In other words, the US economic system operates beneath its full-employment level.
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https://brainly.com/question/14042099#SPJ4The optimal capital structure is determined by several factors including all of the following except:
A. corporate capital gains
B. business risk
C. potential bankruptcy risk
D. agency costs
The optimal capital structure is determined by several factors including all of the following except corporate capital gains.
The ideal combination of debt and equity financing that increases market value while lowering a company's cost of capital is referred to as the optimal capital structure of a corporation. Due to its ability to be deducted from taxes, debt financing theoretically has the lowest cost of capital.
Effective utilization of the available resources is guaranteed by a sound capital structure. It stops over- or undercapitalization. Giving shareholders bigger returns aids the business in boosting earnings. Industry leverage, profitability, business size, growth prospects, asset tangibility, anticipated inflation, and stock market return are the main aspects that need to be looked at when determining capital structure.
Hence the correct option is A
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Selena has placed $500 in an account that pays simple interest of 5 percent annually. Selena will have earned $. 00 in interest by the end of the year.
The interest Selena would earn at the end of the year is $25.
Solution:
Simple interest = amount deposited x interest rate x time
$500 x 0.05 = $25
Simple interest is calculated by multiplying the daily interest rate by the principal amount by the number of days until the next payment. Simple interest benefits consumers who pay their loans on time or at the beginning of each month. Auto loans and short-term personal loans are usually simple interest loans.
Simple interest is based on the principal amount of the loan or initial deposit in a savings account. Simple interest earns no interest. This means that the creditor only pays interest on the principal balance and the borrower does not have to pay interest on the previously accumulated interest.
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The interest Selena would earn on the cease of the 12 months is $25. at the top of two years, the balance within the account would be $866.29.
The hobby Selena would earn at the end of the yr is $25.
on the give up of two years, the stability inside the account might be $866.29. The hobby Suki earned is $ 66. 29.
The cash position in the money market account would double in 18 years.
simple interest = amount deposited x interest rate x time
$500 x zero.05 = $25
The components that may be used to determine the stability are:
FV = P (1 + r)^nm
FV = future cost
P = present fee
R = hobby charge
m = number of compounding
N = wide variety of years
$800 ( 1 + 0.04/four)^8 = $866.29
Interest = $866.29 - $800 = $66.29
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Henry wants to sell rings at a craft fair for $8 each. The materials for each ring cost $1. 50, and the table rental at the fair costs $91 for the day. How many rings does he need to sell for his revenue to equal his expenses?.
He has to sell 14 rings in order to make enough money to cover his expenses.
How many rings must he sell to make a profit?In order to determine how many rings must be sold for him to break even, we must first determine the profit he makes on each ring sold, from which he may deduct funds to pay for supplies, which would be the selling price less expenses:
8-1.5=6.5
The profit must now be divided by the 91 in supplies:
91/6.5=14
He must thus sell 14 rings in order to cover his costs and replenish his inventory.
For Henry's income to meet his costs, he must sell 14 rings.
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B) Now, let’s try "what if". What if you had medical bills for $10,000 for a minor surgery? What would each of the insurance policies pay if you had not yet paid any deductible? Remember that 20% is your part (coinsurance) so the insurer’s percent is 80% for the first formula. Show how you are getting the answer. Formulas:Insurer’s part of Medical Bill = (Bill – deductible) (80%)Your part of medical bill = Total bill – Insurers part
Note that in the scenario given, all three insurance policies would pay $8,000 toward the medical bill, and the policyholder would be responsible for paying the remaining $2,000.
What is a deductible?The deductible in an insurance policy is the amount paid out of pocket by the policyholder before the insurance company will cover any charges. In general, the term deductible refers to one of many types of clauses used by insurance firms as a payment threshold for policy payments.
The full explanation for the computation is given as follows;
To determine the amount that each insurance policy would pay for a $10,000 medical bill for a minor surgery, we need to use the formulas provided and plug in the appropriate numbers.
For the AAA+ insurance policy, the insurer's part of the bill would be calculated as follows:
Insurer's Part of bill = (Bill - deductible) (80%)
= ($10,000 - $0) (80%)
= $8,000
Your part of the bill would be calculated as:
Your part of bill = Total bill - Insurer's part
= $10,000 - $8,000
= $2,000
For the Health Today insurance policy, the insurer's part of the bill would be calculated as follows:
Insurer's Part of bill = (Bill - deductible) (80%)
= ($10,000 - $0) (80%)
= $8,000
Your part of the bill would be calculated as:
Your part of bill = Total bill - Insurer's part
= $10,000 - $8,000
= $2,000
For the Best Insurance policy, the insurer's part of the bill would be calculated as follows:
Insurer's Part of bill = (Bill - deductible) (80%)
= ($10,000 - $0) (80%)
= $8,000
Your part of the bill would be calculated as:
Your part of the bill = Total bill - Insurer's part
= $10,000 - $8,000
= $2,000
Therefore, in this scenario, all three insurance policies would pay $8,000 toward the medical bill, and the policyholder would be responsible for paying the remaining $2,000.
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Full Question:
B) Now, let’s try “what if”. What if you had medical bills for $10,000 for a minor surgery? What would each of the insurance policies pay if you had not yet paid any deductible? Remember that 20% is your part (coinsurance) so the insurer’s percent is 80% for the first formula. Show how you are getting the answer.
Formulas:
Insurer’s part of Medical Bill = (Bill – deductible) (80%)
Your part of medical bill = Total bill – Insurers part
• AAA+
Insurer’s Part of bill =
Your part of bill =
• Health Today
Insurer’s Part of bill =
Your part of bill =
• Best Insurance
Insurer’s Part of bill =
Your part of bill =
The short-run quantity of output supplied by firms will fall short of the natural level of output when the actual price level the price level that people expected.
a. True
b. False
The short-run quantity of output supplied by firms will fall short of the natural level of output when the actual price level the price level that people expected is False.
What happens to the short-run quantity of output supplied by firms?If actual economic price levels differ from predicted price levels in the short term, the amount of production that firms produce may vary from the natural level of output. It is explained by a number of theories how this might occur.In the short term, other manufacturers' output will be less than it would be naturally. This is due to the fact that other manufacturers mistakenly believe that prices are falling relative to other goods and services due to the decline in price level. Since it is no longer viable for them to supply more, they likewise supply less as a result.To learn more about Short-run Fall refer to:
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An important difference between the situation faced by a profit-maximizing competitive price-searcher firm in the short run and the situation faced by that same firm in the long run is that in the short run, price may exceed marginal revenue, but in the long run, price will equal marginal revenue.
The fact that price may exceed marginal revenue in the short run but will equal marginal revenue in the long run highlights . Hence option A is correct .
What is Marginal Revenue ?The increase in revenue that comes from selling one more unit of output is known as marginal revenue. Although marginal revenue can remain constant at a certain level of output, it will eventually start to decline as the output level rises due to the law of diminishing returns.
A key term in microeconomics, marginal revenue (or marginal benefit) refers to the additional total income produced by increasing product sales by one unit a key distinction between the short-term and long-term challenges encountered by a profit-maximizing competitive price-searcher organization
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identify the dimension of organizational climate that refers to the degree of being helped by others and of experiencing cooperation
Support refers to the dimension of organizational climate, which refers to the degree of being helped by others and experiencing cooperation.
What do you mean by climate?⇒ A region's climate is its long-term, often averaged over a 30-year period, weather pattern. In a more precise sense, it is the average and variability of meteorological variables across a time range of months to millions of years. The following meteorological factors are frequently measured: temperature, humidity, air pressure, wind, and precipitation. In a larger sense, climate refers to the state of the atmosphere, hydrosphere, cryosphere, lithosphere, and biosphere, as well as the interactions between these elements. The latitude and longitude, terrain, altitude, land usage, and close-by bodies of water and their currents all have an impact on a place's climate.
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When donald trump announced the tariffs on imports from china in 2019, china reacted by halting imports of us agricultural goods. This is an example of which concept?.
Answer:
Explanation:
economic nationalism
when solving decision trees, what phrase represents the act of dropping an alternative from consideration because it is less favorable than another available option?
Pruning a branch represents the act of eliminating an alternative from consideration because it is less favorable in solving decision trees.
In the context of decision trees, what is the purpose of tree pruning?Pruning lessens the size of choice trees by eliminating portions of the tree that don't give ability to characterize examples. Out of all the machine learning algorithms, decision trees are most susceptible to overfitting, but effective pruning can lessen this risk.
How does pruning relate to the decision tree?In machine learning and search algorithms, pruning is a data compression technique that reduces the size of decision trees by removing redundant and non-critical sections for instance classification.
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Full Question = When solving decision trees, what phrase represents the act of dropping an alternative from consideration because it is less favorable than another available option?
A) cut the leaf
B) open the hatch
C) shake the tree
D) punt the ball
E) prune the branch
________ is characterized by a continuous state of excessive, uncontrollable, and pointless worry and apprehension.
fffffAnswer:
f
Explanation:
Before the launch of the Challenger, a dispute arose as to whether the launch decision should be a management or an engineering decision. What arguments could have been made that the decision should be based on management considerations?
Right contention is choice:- a)The basic issue was that the presentation of O-rings was corresponded with the temperature.
As a result, a serious problem arose when the scientists discovered that a lower temperature had harmed the reaction of rubber "O" rings. which had to be moved in order to seal the vehicle's parts into the solid rocket booster because the casing grew too big from the pressure of the rocket gases.
How hot is too hot for humans?
People frequently cite a 2010 study that estimated that the human body could no longer cool itself by evaporating sweat from the surface of the body above a wet-bulb temperature of 35 C, which is equivalent to 95 F at 100% humidity or 115 F at 50% humidity.
Is it warm or cold at 60 degrees?
Is 60 degrees Fahrenheit warm or cold, you might ask? 60 degrees is the middle temperature in many places. Since temperatures in the United States can range from below zero to over 100 degrees, 60 degrees falls somewhere in between.
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Full Question = Before the launch of the Challenger, a dispute arose as to whether the
launch decision should be a management or an engineering decision.
What arguments could have been made that the decision should be
based on management considerations?
a. The critical issue was that the performance of O-rings was correlated with
the temperature.
b. Engineers had no evidence that the insulating foam had damaged the
space vehicle.
c. There had never been evidence of blow-by leaking of the O-ring seals in
the past, and there was no reason to believe the seals would leak this
time.
d. NASA officials were unhappy with an initial recommendation not to launch,
and future business might have been at risk with another delay.
the budget shows the anticipated differences between sales or revenue and expenses. a.profit b.capital expenditure c.expense d.labor e.cash flow
The capital expenditure budget illustrates the predicted discrepancies between sales or revenue and spending.
In terms of economics, what is a budget?Instead of being a record of financial transactions, an account, a budget is a forecast of income and expenses for a future period.Financial stability is aided by having a budget. A budget makes it simpler to save money for significant purchases like a car or home by keeping track of costs and sticking to a plan. It also makes it easier to pay bills on time and to accumulate an emergency fund. A budget, in general, helps a person have better short- and long-term financial standing.The capital expenditure budget illustrates the predicted discrepancies between sales or revenue and spending.The complete question is,
The _ projected variations in sales or revenue and expenses are shown in the budget. Profit, Capital Expenditures, Costs, Labor, and Cash Flow.
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A stamping plant supplies sheet metal parts to a final assembly plant in the automotive industry. The following data are values representative of the parts made at the plant. Annual demand is 150,000 pc (for each part produced). Average cost per piece is $18 and holding cost is 20% of piece cost. Changeover (setup) time for the presses is 5 hr and the cost of downtime on any given press is $200/hr. Determine: (a) the economic batch size and (b) the total annual inventory cost for the data. If the changeover time for the presses could be reduced to 10 min, determine (c) the economic batch size and (d) the total annual inventory cost
a)The economic batch size is 9129pc.
b) The total annual inventory cost for the data. If the changeover time for the presses could be reduced to 10 min is $32863
c) The economic batch size is 1667pc
d) The total annual inventory cost is $5970
What is annual inventory cost ?
The cost of handling, faulty inventory, handling costs, taxes, insurance premiums paid, and the opportunity cost of the money spent in inventory are all included in the yearly inventory cost.
a) D=150000, S=$200/hr*5hr=$1000, H=$18*20%=3.6
EOQ=sqrt(2DS/H)=sqrt(2(150000)(5*200)/(18*.2))=9129pc
b) Q=EOQ=9129
C=(QH/2)+(DS/Q)=((9129/2)*3.6)+((150000/9129)*1000)=$32863
c) new S=$200/hr*(10/60)hr=$33
EOQ=sqrt(2DS/H)=sqrt(2(150000)((10/60)*200)/(18*.2))=1667pc
d) new Q=EOQ=1667
C=(QH/2)+(DS/Q)=(((1667/2)*3.6)+((150000/1667)*33)=$5970
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what may leadership style be beneficial in leading this effort to solve the issue of revenue, quality of care, and critical leaders leaving? g
Relationship building and employee motivation are characteristics of transformational leadership.
Leadership is the behaviour of leading and coordinating the activities of a team or group of individuals towards a shared objective. It is also defined as the interaction between the individual(s) who lead and those who choose to follow. Through a shared vision, transformational leaders are often able to inspire loyalty, staff respect, and confidence, which increases productivity, boosts employee morale, and improves job satisfaction . In transactional leadership, the leader takes on the role of a change manager by engaging in conversations with subordinates that boost output. To improve care quality and integration, healthcare staff must be led effectively.
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based on the timeline, which conclusion can be made about american policy in these years?
The opponents of annexing foreign countries were defeated by American imperialists.
What do you mean by imperialism?Imperialism is the state's pursuit of expanding its power and dominance, particularly through outright territorial conquest or by seizing control of neighboring nations' governments and economies.
The imperialistic rule of France over Vietnam from the middle to the end of the 1800s is an illustration. British rule over a number of nations in the early 1900s, including India, Australia, and numerous African nations, is another illustration of imperialism.
Imperialism is the use of military force or other forms of coercion to increase a nation's power and influence. The main objective of European nations in the 15th and 16th centuries was colonization.
The concept of imperialism has historically been linked to the ancient governmental structure known as the Empire.
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profitability ratios are prepared by company employees for internal use only. this statement is:______.
Profitability ratios are prepared by company employees for internal use only. This statement is True.
What is the profitability ratio?
Profitability ratios are a class of financial statistics that assess a company's ability to produce profits in relation to its revenue, operational costs, balance sheet assets, or shareholders' equity over time using information at a single point in time.
How are profitability ratios determined?
Ratios of profitability
Net income minus the average total assets equals return on assets. The return-on-assets ratio shows how profitable a company is in relation to its assets.
Net income minus average shareholder equity is return on equity. This ratio displays the return on shareholder investments for your company.
Profitability ratios are used by who?
Profitability ratios are one crucial statistic that investors, bankers, and business owners use to assess the viability and health of a company as well as the effectiveness of its operations.
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a stock had returns of 5, 14, 11, -8, and 6 percent over the past 5 years. the standard deviation for this stock is:
The correct answer is 8.44 percent. Average return = (.05 + .14 + .11 − .08 + .06)/5.
Average return = .056
σ = {[1/(5 − 1)] [(.05 − .056)2 + (.14 − .056)2 + (.11 − .056)2 + (−.08 − .056)2 + (.06 − .056)2]}.5
= 8.44
A standard deviation (or σ) could be a life of however distributed the information is in relevance to the mean. Low variance means that information is clustered around the mean, and high variance indicates information ar a lot detached.
Step 1: Notice the mean.
Step 2: for every datum, notice the sq. of its distance to the mean.
Step 3: Total the values from Step two.
Step 4: Divide by the number of information points.
Standard deviation measures the dispersion of a dataset relative to its mean. It's calculated because of the root of the variance. Variance, in finance, is commonly used as a life of relative peril of plus.
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a sofa regularly sells for . the sale price is . find the percent decrease of the sale price from the regular price.
First: determine the increase or difference between the two numbers you are comparing. Then: Multiply the result by 100 percent after dividing the increase by the original number.
increase equals increase minus original number minus 100. This is a percentage decrease if your response is negative.
It is stated in the given problem that the price has decreased. Therefore, the formula can be used to solve for the percentage change:
As stated in the problem, our original price is 790, and our sale price is 624.10, so our percentage change is equal to 100%.
The percentage change is as follows: 790 - 624.10/ 790 * 100%
= 165.90/790* 100%
0.21 * 100% Change in Percentage = 21%
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Full Question = A sofa regularly sells for $790. The sale price is $624.10. How do you find the percent decrease of the sale price from the regular price?
quality assurance programs have been successful in many manufacturing environments because they increase workers’ autonomy over the work process.T/F
This claim is untrue since employees' lack of authority out over process has resulted in lower success rates.
What does "assurance" mean?A high degree of conviction that something is correct, accurate, and usable is referred to as assurance. After carefully examining the papers and information that were the topic of the auditing or review, professionals certify these positive affirmations.
How do assurance and insurance differ?The process of making up for a loss—such as one brought on by an accidents, fire, theft, flood, etc.—is referred to as insurance. Providing financial assistance for a certain circumstance is called to it as assurance. a serious illness, demise, or impairment, as an illustration.
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if a loan isn‘t repaid, the__ of the borrower—used as security for the debt—could be sold by the lender.
If the loan is not repaid, the collateral of the borrower - used as security for the debt - could be sold by the lender.
What is collateral?Collateral is the asset that a lender accepts as security for extending a loan. If the borrower doesn't make payments, the lender may take the security. Simply put, collateral is something of value that a lender may take from a borrower if the latter fails to repay a loan in accordance with the terms set forth.
It is an asset or other type of tangible property that the borrower possesses, such as a home, animals, a car, etc. The borrower receives loans from the banks based on these assets. The lender has security provided by the collateral. Therefore, collateral serves as a guarantee to the bank so that, in the event that the borrower defaults on the loan, the bank may sell the collateral and recover the loan balance.
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