Assume BGL Enterprises increases its operating efficiency by lowering its costs while holding its sales constant. As a result, given all else constant, the: I HAVE THE ANSWER BUT NEED AN EXPLANATION AS TO WHY THIS IS THE CORRECT ANSWER   A.        return on assets will decrease. B.        profit margin will decline. C.        equity multiplier will decrease. D.        return on equity will increase. E.        price-earnings ratio will increase.

Karan Subject: accounting

It has been suggested that when applied to the percentage growth rate in a business, the law of large numbers implies that as a business grows, it becomes increasingly difficult to maintain its high growth rate in the past. What do you think of this argument? Can you provide an example to support your point of view? What does this mean for the FP&A in forecasting sales? What does it mean in terms of forecasting profit margins?

Which one of the following is an advantage of LIFO? a. In periods of rising prices, less income taxes are paid b. In periods of rising prices, more holding gains are reported in net income c. Record keeping and financial statement preparation are easier d. Conservative income statement and balance sheet disclousures result from falling prices

Consider the following​ statements:      1. Businesses that are capital intensive tend to have high operating gearing.      2. Businesses with relatively high total variable cost compared with their total fixed​ cost, at their normal level of​ activity, are said to have high operating gearing. Are the above statements true or​ false?

Which of the following is true about a firm with products in the decline stage of their lifecycle? A. We expect financing activities to be positive to cash as the product sales continue to be greater than the costs. B. We expect to see the cash from operations turn negative in this phase. C. We expect cash to be positive from investing activities as the investments in the firm have likely stopped and assets are being sold OD. All of the above a re signs of the decline phase.

6. What of the following might result from dropping an unprofitable customer? a. Sales levels would decrease b. Future business relations could suffer c. Costs would decline d Costs could stay the same in the short-term e. All of the above be

Which of the following statements about operating leverage is false? O a. All of the given answers are true. O b. Keeping all factors constant, the higher the contribution margin, the higher the operating leverage. OC. Operating leverage measures how operating income will be affected by changes in sales O d. If the degree of operating leverage higher for a company, this means that the company is more risky than another company with low degree of operating leverage. The degree of operating leverage is higher for companies with lower fixed costs O e.

On a CVP graph for a profitable company, the total expense line will be steeper than the total revenue line. True or False True False

10. Other things being equal, the higher the degree of operating leverage, the profit opportunity with increased sales and risk of loss with a decrease in sales. A) Lower; higher B) Higher; lower c) Lower; lower D) Higher; higher Your answer is Explain your answer: