which one of the following will tend to increase the length of the credit period? Decrease in Product cost Decrease in consumer demand  Decrease in collateral value Increase in credit risk Increase in product standardization

Q: Why do better decisions regarding the purchasing and managing of goods for sale frequently cause…

A: Costing: Costing is a technique used in cost accounting to determine the cost of a product. With the…

Q: Why does Sales discounts are variable consideration?

A: Variable considerations: Variable consideration refers to the amount that the corporation is…

Q: 1. When applying lower of cost or market, market value A. is defined as the selling price B.…

A: This Net realizable value(NRV) generally a common method used in valuation of an asset in inventory…

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: What is the difference between free trade credit and costly trade credit? What is theformula for…

A: Free trade credit implies that the firms which makes their installments inside the discounted time…

Q: Which one of the following is a measure of long term solvency? A. Price earning ratio B. Profit…

A: Solvency refers to a firm's ability to meet its long term financial obligations or debt.

Q: When sales price increases and all other variables are held constant, the break-even point will _

A: Breakeven point means point of sales at which business is covering its fixed costs and variable…

Q: Explain what a sales mix is and how changes in the sales mix affect the break-even point.

A: A sales mix is ratio that shows various products and services which compose the entire sales volume.…

Q: List and compare all advantages and disadvantages of Payback Period Rule, Average Accounting Return,…

A: Payback rule: The Payback period is the length of time required to recover the initial cost of a…

Q: Calculate: a) The break-even level of production and sales b) The margin of safety

A: Given in the question: Per Desk Amount Direct Materials  €3.00 Direct Labour…

Q: What are the disadvantages of cutting expenses/costs and utilising trade credit insurance, when it…

A: Answer: Trade Credit Insurance is the methods that is applied by the company to protect its debts…

Q: a. How can the mathematical equation for break-even sales show both sales units and sales dollars?

A: The analysis for cost, volume and profit in an organization is called Cost-Volume-Profit analysis.…

Q: Which of the following statements (is) are TRUE about credit evaluation? I. In terms of down…

A: Credit evaluation means accessing the financial condition and records of the borrower to know that…

Q: Assume a company receives an actual return of goods. Which of the following needs to happen? Sales…

A: The return of goods is the amount of goods that were sold to customers but were returned to…

Q: Define the term profit Margin on Sales?

A: The profit margin on sales is the ratio of net income to sales. The profit margin on sales is…

Q: In a period of rising prices, FIFO will result in O lower net income than LIFO. lower net purchases…

A: Inventory valuation is the process by which the inventory of the entity is valued. It can be done…

Q: gross profit margin (gross profit/sales) is an important determinant of NOPAT. identify two factors…

A: Gross profit: Gross profit is a profit for a company arrived after deducting cost associated with…

Q: how would an increase in selling price per unit affect the break-even point and the margin of…

A: Break even point is the point where the entity is earning no profit and loss. Its contribution does…

Q: How do you calculate the break-even point of sales?

A: Break even point of sales is the point at which there is no profit or no loss for the business.

Q: Which one of the following is most closely related to the net present value profile? A: Payback B:…

A: The net present value method is used to evaluate the investment projects. We can evaluate the…

Q: During periods of rising prices, which method (FIFO-LIFO-AVCO) results in the highest gross profit?…

A: First-in-First-Out (FIFO): In this method, items purchased initially are sold first. So, the value…

Q: Explain in your own words how increasing Price-to-Book ratio could affect the investment decision.

A: Price to book ratio (P/B) is determined by dividing price per share of a firm to its book value per…

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: Why is an accurate sales forecast critical for financial planning?

A: Financial planning is the process of deciding how a company can achieve its goals & objectives.…

Q: How is the receivables turnover ratio measured? What does this ratio indicate? Is a higher or lower…

A: Receivables turnover ratio is measured by dividing net credit sales of a period by average accounts…

Q: How would an increase in sales volume affect the break-even point and the margin of safety

A: Break-Even point :- The break-even point is that the point wherever a company’s revenues equals its…

Q: What is the reason that makes gross profit margin increases and decreases?

A: The gross profit margin is calculated by deducting the cost of goods sold from the sales revenue and…

Q: What is the break-even sales increase? Interpret.

A: The company would be defining the sales after considering the estimated revenues. All those revenues…

Q: An increase (decrease) in cost of sales due to volume of *

A: Cost of Sales Cost of sales which is described as the cost which are incurred at the time of sales…

Q: What is the reason that makes net profit margin increases and decreases?

A: What is the reason that makes net profit margin increases and decreases?

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: Define days sales outstanding (DSO). What can be learned from it?How is it affected by sales…

A: The average number of days in which a firm receives payments after the sale is done is a calculation…

Q: Which of the following can be considered a risk in CVP analysis?

A: CVP Analysis:   CVP analysis establishes the relation between cost, volume and profit of the…

Q: Which tool can be used to easily calculate the change in profit resulting from a change in sales…

A: Cost-volume-profit analysis: Cost-Volume-Profit Analysis (CVP analysis), also commonly referred to…

Q: What is an aging schedule? What can be learned from it? How is itaffected by sales fluctuations?

A: Aging schedule is a statement which shows the time taken to recover their receivable and for…

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: How does an increase in the income rate affect the breakeven point?

A: Break-even sales is the dollar amount of revenue at which a business earns a profit of zero i.e. No…

Q: In the case of decrease the operating cash cycle, which one of the following actions should be…

A: cash flow from operating activities include normal operating of firm.

Q: Gross profit variance analysis can be used to study the effect of:    a. Changes in cost of goods…

A: Gross profit is the gross income/revenue left after deducting the cost of goods sold from the net…

Q: Explain how a shift in the sales mix could result in both a higher break-even point and a lower…

A: Sales mix involves the composition of different products and some products have a higher margin of…