The most likely reason why Rebecca received a death benefit of $30,000 instead of $27,000 is d. d. Nick's contract had a Guaranteed Minimum Withdrawal Benefit (GMWB).
A Guaranteed Minimum Withdrawal Benefit is a feature in certain insurance contracts or investment products that guarantees a minimum withdrawal amount or death benefit, regardless of the actual market value of the investment. In this case, even though the market value of Nick's fund was $27,000 at the time of his death, the GMWB provided a death benefit of $30,000, ensuring that Rebecca received a higher amount. The GMWB feature offers additional protection and guarantees to the beneficiary in case of death or other triggering events.
Learn more about investment here:
https://brainly.com/question/15105766
#SPJ11
"Identify and evaluate the three major functions of foreign
exchange market.
The three major functions of the foreign exchange market are currency conversion, hedging and risk management, and facilitating international trade and investment by providing a platform for currency exchange.
Investment refers to the allocation of resources, such as money, time, or effort, into assets or projects with the expectation of generating future returns or benefits. It involves committing capital to acquire or develop assets, such as stocks, bonds, real estate, or business ventures, with the goal of generating income, capital appreciation, or both. Investment decisions are based on various factors, including risk tolerance, expected return on investment, market conditions, and long-term financial goals. Successful investments can provide financial security, wealth accumulation, and opportunities for growth and diversification. However, investments also carry risks, such as market volatility and the potential for loss of capital.
Learn more about investment here:
https://brainly.com/question/32486594
#SPJ11
This question assumes that the market for apartments in Seattle is perfectly competitive.
(a) Evaluate the decision of the Washington government to double the first home buyer subsidy in terms of Pareto efficiency and fairness.
(b) Now suppose the Washington government decided not to help first home buyers in Seattle any longer and removes the existing subsidy. Evaluate this decision in terms of Pareto efficiency and fairness.
(a) Doubling the first home buyer subsidy by Washington government can be evaluated terms homeownership of Pareto efficiency & fairness.
(b) If the Washington government decides to remove existing subsidy & stop helping first home buyers in Seattle, it can in terms of Pareto efficiency and fairness.
(a) Doubling the first home buyer subsidy may increase Pareto efficiency by promoting homeownership and stimulating the housing market, but it may be considered unfair as it provides an advantage to specific group.
(b) Removing the subsidy may decrease fairness as it removes assistance for first home buyers, but its impact on Pareto efficiency depends on the overall market dynamics and potential effects on resource allocation.
Homeownership refers to the state of owning a residential property, typically a house or a condominium, as opposed to renting or leasing it. It is a significant aspect of personal finance and often considered a long-term investment. Homeownership provides individuals and families with stability, a sense of belonging, and potential financial benefits such as equity buildup.
Learn more about homeownership here:
https://brainly.com/question/28320018
#SPJ11
One of the other RIL bond of 10 year maturity (F.V. = Rs. 100 , coupon rate =10% ) is also trading in the market at a yield of 9% while the 30 -year RIL is trading at a yield of 10%, what is the percentage change in price for each of these bonds for 1% decrease in the yields across all maturities?
What is the percentage change in price for each of these bonds for 1% increase in the yields across all maturities?
To calculate the percentage change in price for each bond, we need to use the bond price formula and consider the relationship between bond prices and yields.
Using the bond price formula, we can calculate the bond price at the current yield and the bond price at a 1% decreased yield:)The percentage change in price for a 1% decrease in yield can be calculated using the following formula: Percentage Change = ((Current Bond Price - Decreased Bond Price) / Current Bond Price) * 100Similarly, for the second bond (30-year maturity, coupon rate = 10%, trading yield = 10%), we can follow the same steps to calculate the percentage change in price for a 1% decrease in yield. For a 1% increase in yields, the same steps can be applied to calculate the percentage change in price.
learn more about percentage here:
https://brainly.com/question/30715597
#SPJ11
a. Net income was $469,000.
b. Issued common stock for $76,000 cash.
c. Paid cash dividend of $16,000.
d. Paid $125,000 cash to settle a note payable at its $125,000 maturity value.
e. Paid $119,000 cash to acquire its treasury stock.
f. Purchased equipment for $91,000 cash.
Use the above information to determine cash flows from financing activities. (Amounts to be deducted should be indicated with a minus sign.)
Cash flows from financing activities is determined by using the information provided as follows: Net income = $469,000. The cash flows from financing activities is -$184,000.
Cash flows from financing activities is determined by using the information provided as follows: Net income = $469,000. Issued common stock = $76,000. Paid cash dividend = -$16,000Paid cash to settle a note payable = -$125,000Paid cash to acquire treasury stock = -$119,000. This implies that the cash flows from financing activities is obtained by summing the value of the cash inflows from financing activities and the cash outflows from financing activities.
Thus, the cash flows from financing activities would be: Cash flows from financing activities = Issued common stock - Paid cash dividend - Paid cash to settle a note payable - Paid cash to acquire treasury stock Cash flows from financing activities = $76,000 - $16,000 - $125,000 - $119,000. Cash flows from financing activities = -$184,000. Therefore, the cash flows from financing activities is -$184,000.
learn more about cash
https://brainly.com/question/32482438
#SPJ11
As an MSc. Accounting \& Finance Student of the Accra Business School, studying International Auditing and Assurance, select an Organization or Company from the Ghana Stock Exchange (GSE) and review the following information from their most recent Annual Report: (i) Board Chairman / Chairperson's Report (ii) CEO/ Managing Director's Report (iii) Environmental Report (iv) Corporate Social Responsibility Report (v) Corporate Governance Report. Your review should be specific to the following: A SWOT analysis of each of the reports mentioned above and any recommendation(s) to improve upon any of them if any deficiency is determined.
By taking action on the suggestions and capitalizing on its advantages, GCB Bank Limited can improve transparency, accountability, and long-term profitability through targeted environmental impact reporting, investigation of renewable energy options, enhanced CSR reporting, and creative community service projects.
The following is a summary of what the SWOT analysis in GCB Bank Limited's annual report suggests:
In the Environmental Report, please include specifics regarding the bank's impact on the environment.
Investigate various forms of renewable energy to demonstrate the bank's commitment to protecting the environment.
CSR Report: Provide specific information regarding the bank's CSR impact.
Encourage innovative community service and social responsibility initiatives at the bank.
The bank ought to build on these reports in order to provide a more thorough explanation of the environmental and social activities they engage in.
The fact that no reports found any significant defects or hazards is a positive development. On the other hand, these reports give the bank the opportunity to emphasize its achievements, projects, and future objectives.
By implementing the recommendations and capitalizing on its strengths, GCB Bank Limited may be able to increase its level of transparency, accountability, and long-term viability. In order for the bank to meet the expectations of its stakeholders and the standards set by the industry, it needs continuously analyze and improve its reporting.
To know more about industry
https://brainly.com/question/30001696
#SPJ11
Hilltop Company provides the following information about its single product:
Selling price per unit =$9.00 per unit
Variable cost per unit =$4.00 per unit
Total fixed costs =$250,000
Target profit =$100,000
How many units must the company sell to reach the target profit goal?
O 50.000 units
O 62,500 units
O 87,500 units
O None of the answers are correct.
O 70,000 units
The company must sell 70,000 units to reach the target profit goal of $100,000.
To determine the number of units the company must sell to reach the target profit goal, we can use the contribution margin approach. The contribution margin is the selling price per unit minus the variable cost per unit.
Contribution margin per unit = Selling price per unit - Variable cost per unit
Contribution margin per unit = $9.00 - $4.00 = $5.00
To calculate the number of units needed to reach the target profit, we divide the total fixed costs plus the target profit by the contribution margin per unit:
Number of units = (Total fixed costs + Target profit) / Contribution margin per unit
Number of units = ($250,000 + $100,000) / $5.00
Number of units = $350,000 / $5.00
Number of units = 70,000 units
To know more about variable cost;
https://brainly.com/question/31811001
#SPJ11
Which of the following is considered discretionary government spending? payments to food stamp (SNAP) recipients payments to Social Security recipients payments to unemployment insurance recipients payments to foreign bondholders payments to government employees
Discretionary spending is a government outlay that isn't necessary for the government's survival or to maintain its current obligations, such as Social Security or Medicare. As a result, when the government develops a budget, it has complete control over discretionary spending.
Discretionary spending is a government spending category that isn't required by law or tied to pre-existing obligations like Social Security, Medicare, and other entitlements. Thus, discretionary spending is subject to the annual appropriations process and is approved by Congress. For instance, military spending, infrastructure spending, and education spending are examples of discretionary spending.
Thus, the option that is considered discretionary government spending is: payments to government employees.
To know more about Discretionary spending, click here
brainly.in/question/28949715
#SPJ11
Hector's wealth is zero, he expects to work for another 45 years at a constant salary of $80,000 and live for another 60 years. If yearly taxes are $20,000 and Hector completely smooths consumption over his lifetime, his annual consumption is ____
If yearly taxes are $20,000 and Hector completely smooths consumption over his lifetime, his annual consumption is $60,000.
To calculate Hector's annual consumption, we need to subtract his annual taxes from his annual salary and divide the remaining amount by the number of years he expects to live.
Hector's annual salary is $80,000, and his annual taxes are $20,000. So, his annual income after taxes is $80,000 - $20,000 = $60,000. Since he completely smooths his consumption over his lifetime, he will consume the same amount each year.
Considering he expects to live for another 60 years, his annual consumption will be $60,000 per year. This means he will spend the entire amount of his after-tax income on consumption each year.
In conclusion, based on Hector's expectation of working for another 45 years, living for another 60 years, and completely smoothing his consumption, his annual consumption is projected to be $60,000. This calculation takes into account his constant salary of $80,000, annual taxes of $20,000, and the assumption that he spends his entire after-tax income on consumption each year. By maintaining a consistent consumption level over his lifetime, Hector aims to balance his financial resources and expenses, ensuring a stable standard of living throughout his working and retirement years.
Learn more about consumption here:
https://brainly.com/question/31868349
#SPJ11
Assuming that the loss occurs in an establishment covered by a business owner policy (BOP) with no optional coverages, which of the following property would be covered?
A. An automobile damaged by vandalism while parked in the garage of a covered apartment building.
B. Currency destroyed by a fire on the premises.
C. Merchandise destroyed when a customer stumbles and knocks over a display of fragile gift items.
D. Damage to lawn and landscaping cause by flooding.
A. Yes, the automobile damaged by vandalism would be covered under a Business Owner Policy (BOP) as it falls under the category of property damage caused by a covered peril (vandalism).
BOPs typically provide coverage for property damage caused by covered perils, such as vandalism. In this case, the automobile was damaged by vandalism while parked in the garage of the covered apartment building, making it eligible for coverage under the BOP. Vandalism is a common covered peril in BOPs, ensuring that property damaged by such acts is protected.
Learn more about property here
https://brainly.com/question/29134417
#SPJ11
Fobic Inc. acquired some manufacturing equipment in january 2019 for $400,000 and depreciated $40,000 each year for three years on a straight-line basis. During 2022, the manufacturer announted a new technology for this type of equipment that will make the old models obsolete by the end of 2025. As a result, Fobic will plan to replace the equipment at that time, effectively reducing the asset's life from ten to seven years, In its financial statements for 2022, Fobic should:
O Charge $280,000 in depreciation expense.
O Report the book value of the equipment in its December 31,2022 balance sheet at $210,000.
O Make an adjustment to retained earnings for the error in measuring depreciation during 2018-2021. O None of these answer choices are correct.
In its financial statements for 2022, Fobic Inc. should report the book value of the equipment in its December 31, 2022, balance sheet at $210,000.
Given that Fobic Inc. acquired the manufacturing equipment in January 2019 for $400,000 and depreciated $40,000 each year for three years on a straight-line basis, the accumulated depreciation as of December 31, 2021, would be $120,000 ($40,000 * 3 years). Therefore, the carrying value or book value of the equipment as of December 31, 2021, would be $280,000 ($400,000 - $120,000).
In 2022, Fobic Inc. needs to consider the remaining years of the equipment's useful life, which have been reduced from ten to seven years due to the obsolescence caused by new technology. However, the question does not provide information about the specific depreciation method or rate to be used for the remaining years.
As a result, we cannot accurately determine the exact amount of depreciation expense for 2022. Therefore, charging $280,000 in depreciation expense or making an adjustment to retained earnings for the previous years' depreciation error would be speculative assumptions.
Hence, the most appropriate answer from the given choices is to report the book value of the equipment in its December 31, 2022, balance sheet at $210,000.
To know more about depreciation, visit:
https://brainly.com/question/30531944
#SPJ11
For this discussion, respond to the following in 200-350 words... Review the following sheriff's department policies and procedures; Lexington, SC Miami, Fl Los Angeles, CA Dawson County, NE Providence, RI Dallas, TX How are they the same and different? Should other law enforcement agencies follow any of the above law enforcement agency? Why or Why not?
Agencies should tailor their approaches to their unique circumstances, local context, and community needs.
It is clear that there are both parallels and contrasts among the mentioned sheriff's departments in Lexington, SC, Miami, FL, Los Angeles, CA, Dawson County, NE, Providence, RI, and Dallas, TX after reviewing the policies and practices of each.
A focus on preserving public safety and defending the community is one of the parallels seen. All agencies stress the value of police responsibility, professionalism, and training. They lay down procedures for handling crises, carrying out inquiries, and enforcing laws. Additionally, each agency has policies on the use of force that are designed to guarantee its proper and proportionate application.
The policies of the departments do, however, also differ noticeably. These variances might be attributable to changes in jurisdictional requirements, regional legislation, social dynamics, and organizational cultures. For instance, given to the greater chance of major events and protests, urban departments in places like Miami and Los Angeles may have more extensive rules regarding crowd management. On the other hand, rural agencies like Dawson County may give higher priority to laws pertaining to agricultural offences or search and rescue.
Depending on their particular needs and environment, other law enforcement agencies may or may not want to adopt any of the aforementioned rules. Although the policies of these departments undoubtedly contain beneficial practices and methods, it is crucial to take into account local conditions before adoption. The success and applicability of particular policies can be strongly impacted by the crime rates, demography, and community expectations that vary significantly across different locations.
Rather than uncritically adopting directives from other agencies, law enforcement.
Learn more about policies and procedures here:
https://brainly.com/question/19592587
#SPJ11
The current exchange-rate regime is sometimes described as a system of managed floating exchange rates, but with some blocs of currencies that are tied together.
What are the two major blocs of currencies that are tied together?
What are the major currencies that float against each other?
How would you characterize the movements of exchange rates between the U.S. dollar and the other major currencies since the shift to managed floating in the early 1970s?
In the current exchange-rate regime, The Euro block and the Chinese block are the two major blocs that are tied together, whereas the U.S. dollar and the British pound float against each other, and the U.S. dollar can be characterized as volatile.
The two major blocs of currencies that are tied together are the Euro bloc and the Chinese bloc. The Euro bloc consists of seventeen European Union countries, that use the Euro as their currency. The Chinese bloc, on the other hand, is composed of countries that peg their currencies to the Chinese yuan.
The major currencies that float against each other are
U.S. Dollar (USD): The U.S. dollar is the world's primary reserve currency and serves as a benchmark for many global transactions.Japanese Yen (JPY): The Japanese yen is another major currency that freely floats against other currencies. British Pound (GBP): The British pound is the currency of the United Kingdom. Swiss Franc (CHF): The Swiss franc is the currency of Switzerland. It is known for its reputation as a safe-haven currency and freely floats against other major currencies.The movements of exchange rates between the U.S. dollar and the other major currencies since the shift to managed floating in the early 1970s can be characterized by frequent fluctuations and volatility. Sometimes, the U.S. dollar gains strength, and other times, it loses strength. For instance, in the 1980s, the U.S. dollar rose sharply against other currencies before declining in the late 1990s.
To know more about exchange-rate
https://brainly.com/question/10187894
#SPJ11
Handley Bank advertises that its standard lending rate is 10% per annum compounding monthly. Which of the following rates is closest to an effective rate per annum that is consistent with the Handley Bank quoted rate (to two decimal places)?
O a. 0.833% per annum compounding monthly
O b. More than one of the other options are correct
O c. 10.47% per annum compounding annually
O d. 11.57% per annum compounding annually
O e. 12.68% per annum compounding annually
The option that is closest to an effective rate per annum that is consistent with the Handley Bank quoted rate is option E (12.68% per annum compounding annually).
The effective rate per annum is the interest rate that is actually earned or charged on an annual basis.
Handley Bank advertises that its standard lending rate is 10% per annum compounding monthly.
Therefore, the quoted rate of Handley Bank is 10% per annum, compounded monthly.
Since the quoted rate is compounded monthly, the number of compounding periods per year is 12, which is the number of months in a year.
Then, the formula for the effective annual rate is used to solve for it. The formula is:
Effective rate = (1 + quoted rate/ number of compounding periods per year)^number of compounding periods per year -1
Therefore, substituting the given values, we have:
Effective rate = (1 + 0.1/12)^12 - 1 = 0.126755 or 12.68%
Thus, the correct option is E. 12.68% per annum compounding annually is closest to an effective rate per annum that is consistent with the Handley Bank quoted rate (to two decimal places).
Learn more about the quoted rate: https://brainly.com/question/30502517
#SPJ11
Bonnie is concerned she may not have enough money to expand the company given how quickly the industry is doing. She is thinking of asking external parties to contribute capital into a business. You advise her to consider issuing stocks – a common way of raising capital when a company gets listed. Using available information from a sample of firms which can be considered comparable to Bonnie’s business in the future. You estimate, explain and advise her on the following issues.
1: A comparable firm is about to pay dividend of $2 by the end of the year. This information is available to the market. Your forecast indicates that dividend of this company can increase by 4% in the next two years. After that, dividend will increase by 5% and 6% in the year 3 and 4 before revert to 2% per year indefinitely. Given the level of risk of this stock, you consider that it is appropriate to accept a rate of return of 4% per year. What should be the price of this stock?If this stock is currently trading for $100 in the market, how would you advise Bonnie?
2: Bonnie is now getting very excited about all important concepts from managerial finance for a business leader like her. She finds these concepts interesting, albeit complicated, and useful for her business. You decide to advise her on the overall cost of capital issue as she will need to understand the overall cost her company has to pay when using different sources of capital.
The stock above (as discussed on question 3-part a) has beta of 0.60. The Australian market risk premium is 7 per cent. Also, you will earn 3 per cent per year when you buy a 10-year bond issued by the Australian government. What is the cost of equity? For the Australian equity market, why investing in different stocks will generate different expected return for investors in the context of the capital asset pricing model (CAPM)?
The price of the stock can be calculated using the dividend discount model (DDM). Based on the provided information, the price of the stock would be $50.79. If the stock is currently trading for $100 in the market, it indicates that the market has a different perception of the stock's value. Bonnie should carefully evaluate market conditions and seek expert advice before making any investment decisions.
1: To determine the price of the stock, we can use the dividend discount model (DDM). The DDM calculates the present value of all future dividends. Given the information provided, the expected dividends for the next four years are $2, $2.08, $2.18, and $2.29, respectively. After that, the dividends are expected to grow at a constant rate of 2%. Using a required rate of return of 4%,
we can calculate the present value of the dividends and the stock price. The price of the stock is the sum of the present values of all future dividends. Based on these calculations, the price of the stock is $72.11.
If the stock is currently trading for $100 in the market, it suggests that the market has a different perception of the stock's value. This could be due to factors such as market sentiment, investor expectations, or other market dynamics.
In this case, Bonnie should carefully analyze the market conditions, evaluate the company's growth potential and financial performance, and seek expert advice before making any investment decisions.
2: The cost of equity can be calculated using the Capital Asset Pricing Model (CAPM). The CAPM formula is: Cost of Equity = Risk-Free Rate + Beta × Market Risk Premium. Given a beta of 0.60 and a market risk premium of 7%, we can calculate the cost of equity. Assuming a risk-free rate of 3% (based on the 10-year government bond), the cost of equity would be 7.2% (3% + 0.60 × 7%).
Investing in different stocks generates different expected returns within the CAPM framework because each stock has a unique beta, which measures its sensitivity to market movements. Stocks with higher betas are expected to have higher returns as they are more sensitive to market fluctuations.
This is because the CAPM considers the systematic risk of an investment, which cannot be diversified away. Therefore, stocks with higher betas are perceived to carry higher risk and, therefore, command a higher expected return to compensate investors for taking on that additional risk.
To learn more about price of the stock click here : brainly.com/question/31211894
#SPJ11
You are a senior audit clerk at KNK Inc. and are currently busy with the finalisation of the audit of Steinlief (Pty) Ltd. The audit manager has brought a first year audit clerk to the team to assist in the finalisation of the audit. Part of your duties as a senior is to mentor junior staff and assist them with their work related queries to enable them to perform their tasks. You are currently busy with the audit procedures of the inventory \& production cycle, specifically evaluating the work of the costing expert used by the client's management to value its inventory in terms of the standard costing model. a. Name the requirements of working papers that the first year audit clerk must apply when setting up working papers for the audit file. b. Describe the advantages (value) of working papers for auditors to the first year audit clerk. c. List the steps in the completion phase of the audit to enable the first year audit clerk to complete their tasks efficiently. d. Explain to the first year audit clerk, the hierarchy of the importance of audit evidence (Reliability). Your answer should be discussed under the following headings: i. Source of audit evidence obtained ii. Nature of audit evidence obtained. e. List the auditor's procedures to rely on the work of the costing expert used by management. f. Explain to the first year audit clerk the considerations affecting the nature, timing and extent of the auditor's procedures required to rely on the work of the costing expert.
a. Proper identification, Clear purpose, Date and authorship, References, Sufficient documentation b. Aid comprehension, Facilitate review, Demonstrate evidence, Enhance communication, Serve as a reference c. Final review, Drafting the audit report, Management representation letter, Subsequent events, Archiving and retention, d.i. External documentary evidence, External oral evidence, Internal documentary evidence, Internal oral evidence d.ii. Relevance, Sufficiency, Independence, Objectivity, Timeliness f. Expertise and objectivity of the costing expert, Materiality and risk, Control environment, Industry-specific factors, Consistency and reasonableness
a. The requirements of working papers that the first year audit clerk must apply when setting up working papers for the audit file include:
1. Proper identification: Each working paper should have a unique title or reference number for easy identification and retrieval.
2. Clear purpose: The purpose of each working paper should be stated clearly to provide context and relevance.
3. Date and authorship: Working papers should be dated and clearly indicate the person responsible for preparing or updating them.
5. Sufficient documentation: Sufficient information should be provided to support conclusions and findings, including calculations, analysis, and relevant source documents.
b. The advantages of working papers for auditors are valuable to the first year audit clerk because they:
1. Aid comprehension: Working papers provide a structured framework to understand and document audit procedures, facilitating knowledge transfer and learning.
2. Facilitate review: Well-prepared working papers allow for efficient and effective review by supervisors or external reviewers, enhancing quality control.
3. Demonstrate evidence: Working papers serve as evidence of the auditor's work, supporting the audit opinion and providing a basis for professional judgment.
4. Enhance communication: Clear and well-organized working papers improve communication among audit team members, enabling collaboration and the exchange of information.
c. The steps in the completion phase of the audit, which can help the first year audit clerk complete their tasks efficiently, include:
1. Final review: Conduct a comprehensive review of the audit file to ensure all necessary procedures have been completed and documented.
2. Drafting the audit report: Prepare the draft audit report based on the findings and conclusions drawn from the audit work.
3. Management representation letter: Request management to provide a written representation letter that acknowledges its responsibility for the financial statements and discloses relevant information.
4. Subsequent events: Evaluate subsequent events occurring between the balance sheet date and the date of the auditor's report to determine.
d. i. The hierarchy of the importance of audit evidence is as follows:
1. External documentary evidence: Evidence obtained from independent external sources is considered the most reliable, such as bank statements or confirmations from third parties.
2. External oral evidence: Verbal information obtained from independent external sources carries less weight than documentary evidence but can still be valuable.
3. Internal documentary evidence: Documents generated and held by the entity being audited, such as sales invoices or internal reports, are considered less reliable than external evidence.
d. ii. For example:
1. Relevance: The evidence should be relevant to the audit objective and provide information that is material to the financial statements.
2. Sufficiency: The quantity and quality of evidence should be sufficient to support the auditor's conclusions and enable them to form an opinion.
3. Independence: Evidence from independent sources is generally more reliable than evidence generated by the entity being audited.
4. Objectivity: The evidence should be objective and free from bias or manipulation.
f. Considerations affecting the nature, timing, and extent of the auditor's procedures required to rely on the work of the costing expert include:
1. Expertise and objectivity of the costing expert: The auditor needs to evaluate the expert's qualifications, experience, and independence to determine the level of reliance on their work.
2. Materiality and risk: The significance of the inventory valuation to the financial statements and the assessed risk of material misstatement will influence the extent of the auditor's procedures.
3. Control environment: The effectiveness of the client's internal controls over inventory and production processes may impact the auditor's reliance on the costing expert's work.
4. Industry-specific factors: The complexity and uniqueness of the industry in which the client operates may require additional procedures to validate the costing expert's findings.
Learn more about analysis here:
https://brainly.com/question/33120196
#SPJ11
FILL THE BLANK.
"_____ manufacturing treats suppliers and customers as
""arm's-length"" independent entities.
a) Productivity improvement
b) Economic
c) Traditional
d) Lean"
d. Lean manufacturing treats suppliers and customers as "arm's-length" independent entities, emphasizing the elimination of waste and improving efficiency in the production process.
"Arm's-length" independent entities refer to independent organizations or companies that have no shared interests or affiliations. They interact in a manner where one entity tries to maximize profits by minimizing the transactions' costs, even at the other's expense. Lean manufacturing treats suppliers and customers as "arm's-length" independent entities.
Lean manufacturing is a business model that aims to eliminate waste, increase efficiency, and decrease production time and costs. The objective of lean manufacturing is to produce high-quality products quickly and at a reasonable price. Lean manufacturing methods focus on adding value to a product by removing unnecessary steps in the production process and reducing waste.
Lean manufacturing principles apply to many aspects of a business, including design, supply chain management, and production, and many manufacturers worldwide have adopted this model.
Learn more about production process here:
https://brainly.com/question/30029834
#SPJ11
Tembo holds a one-year put option on Shoprite common stock. The put option can be exercised at K50. Assume that the expiration date has arrived and the premium is K3. What is the value of the Shoprite put option on the expiration date if:
Shoprite common stock is selling at K56 per share?
Shoprite common stock is selling at K45 per share?
A trader buys a call option on a share for K2. The stock price is K25 and the strike price is K20.
State the circumstances under which the trader will make a profit.
State the circumstances under which the option will be exercised.
Draw a diagram in support of your answers above, showing the variation of the trader’s profit with the stock price at the maturity of the option.
Trader's profit with the stock price at maturity:
Profit occurs if stock price > strike price + premium. Option exercised if stock price > strike price.
The trader will make a profit if the stock price at maturity exceeds the sum of the strike price and the premium paid for the call option. The option will be exercised by the trader if the stock price at maturity exceeds the strike price. A diagram can illustrate the relationship between the trader's profit and the stock price, showing the profit region above the breakeven point and the conditions for exercise.
Learn more about strike price here:
https://brainly.com/question/32243005
#SPJ11
We are interested in constructing a model that predicts restaurant sales. We observe a dataset where the four following variables were collected for each restaurant:
- Volume of Sales (in dollars).
- Amount of money spent on advertising (in dollars).
- The color of the restaurant's logo.
We decide to construct a regression model with volume of sales as output variable. Which inputs should we use?
O We should use as inputs: - Amount of money spent on advertising (in dollars). The color of the restaurant's logo is irrelevant and we should not use it. Adding it will most likely impact the quality of the prediction.
O We should use as inputs: - Volume of Sales (in dollars). - Amount of money spent on advertising (in dollars). - The color of the restaurant's logo.
O We should just put all the variables in and let the data speak from themselves. We should try all possible combinations of inputs from the two variables: - Amount of money spent on advertising (in dollars). - The color of the restaurant's logo. and select the model that gives the best predictions based on the test mean squared error.
O We should use as inputs: - Amount of money spent on advertising (in dollars). The color of the restaurant's logo is a discrete variable, and thus should not be used because this is a regression problem and not a classification problem.
We should use as inputs: - Amount of money spent on advertising (in dollars). The color of the restaurant's logo is irrelevant and we should not use it. Adding it will most likely impact the quality of the prediction.
The color of the restaurant's logo is not directly related to the volume of sales and is not a meaningful predictor in this context. Therefore, including it as an input variable in the regression model is not necessary and may introduce unnecessary noise or bias into the model. It is more appropriate to focus on variables that have a direct and quantifiable impact on sales, such as the amount of money spent on advertising.
To know more about advertising, visit;
https://brainly.com/question/32251098
#SPJ11
AGRIBUSINESS MANAGEMENT Q1
Analysis of key agribusiness management element
The extent to which the analysis of the relative significance of the identified agribusiness management element is comprehensive and includes analysis of the relative significance of the other elements identified, as well as consideration of other challenges.
Identification of Key agribusiness management element
The extent to which the description of the key agribusiness management element is comprehensive, and includes identification of a suite of potential options and a clear rationale for priority setting.
Research and References
The extent to which the research exceeds requirements and avoids errors in formatting of in-text citations and references following APA7 style.
The key agribusiness management element for analysis is supply chain management. Supply chain management encompasses the coordination and integration of various activities involved in the production, processing, storage, and distribution of agricultural products.
In analyzing the relative significance of supply chain management, a comprehensive approach is required. This involves considering the interplay between supply chain management and other agribusiness management elements such as marketing, finance, human resources, and operations. The analysis should highlight how effective supply chain management impacts these other elements and overall business performance.
Furthermore, it is essential to consider the challenges associated with supply chain management, such as logistics, transportation, inventory management, quality control, and traceability. Assessing the relative significance of supply chain management requires an evaluation of how these challenges impact the efficiency, cost-effectiveness, and competitiveness of the agribusiness.
To identify potential options, one can explore strategies for improving supply chain management, such as implementing technology solutions for real-time tracking, improving communication and collaboration among stakeholders, optimizing inventory management, and establishing strategic partnerships.
The priority setting should be based on a clear rationale, considering factors such as the potential impact on cost reduction, quality improvement, customer satisfaction, market reach, and sustainability goals.
Research and References:
The research conducted should exceed the requirements by including a variety of credible sources, such as academic journals, industry reports, and reputable websites. In-text citations and references should be formatted accurately following the APA 7 style, avoiding errors and inconsistencies.
The analysis of supply chain management as a key agribusiness management element should be comprehensive, taking into account its relative significance, impact on other elements, and consideration of challenges. The identification of potential options and priority setting should be rational and well-supported. The research conducted should go beyond basic requirements and adhere to proper APA 7 formatting, ensuring the use of credible sources and accurate referencing. By conducting a thorough analysis, agribusinesses can enhance their supply chain management practices, optimize operations, and achieve greater competitiveness in the market.
To know more about agribusiness management element ,visit:
https://brainly.com/question/16538679
#SPJ11
OptiLux is considering invosting in an automated manufacturing 5y stem. The system requires an initial investment of $4.6 million, has a 20 -year life, and will have zero salvage value. If the system is implemented, the company will save $700,000 per year in direct labor costs. The company requires a 12% return from its investments. (PV of $1. FV of $1. PVA of $1, and FVA of $1 ) (USe appropriate factor(s) . from the tables provided.) a. Compute the proposed investmont's net present value. b. Using the answer from part a, is the investment's internal rate of return higher ar lower than 12% ? Hint: it is not necessary to compute IRR to answer this question.
The net present value (NPV) of the proposed investment in the automated manufacturing system is $1.68 million. Based on this NPV, the investment's internal rate of return (IRR) is higher than the required 12% return.
The net present value (NPV) of an investment represents the difference between the present value of cash inflows and outflows over the investment's life. To compute the NPV, we need to discount the cash flows at the company's required rate of return.
In this case, the initial investment is $4.6 million, which is an outflow. The cash inflow from the investment comes in the form of annual savings in direct labor costs, amounting to $700,000 per year. Since the system has a 20-year life and zero salvage value, we can calculate the present value of these cash inflows using the Present Value of an Annuity (PVA) formula.
Using a 12% discount rate, we can refer to the appropriate factor from the PVA table to calculate the present value. The PVA factor for 20 years at 12% is 8.5136. Multiplying this factor by the annual cash inflow of $700,000 gives us a present value of $5,959,520.
To calculate the NPV, we subtract the initial investment of $4.6 million from the present value of cash inflows ($5,959,520 - $4,600,000), resulting in an NPV of $1,359,520.
Since the NPV is positive ($1.36 million), it indicates that the investment is expected to generate a return higher than the required 12%. Therefore, the investment's internal rate of return (IRR) is higher than 12%.
Learn more about net present value (NPV)
https://brainly.com/question/32743126
#SPJ11
As part of the project rollout and execution you need to ensure that the truck drivers have employment contracts. You need to assist the Human Resource Section of Comap cc with these. Draft the following clauses for the contracts:
2.1 Leave entitlements
2.2 Notice periods upon termination of employment
When drafting employment contracts for truck drivers, two important clauses to include are leave entitlements (clause 2.1) and notice periods upon termination of employment (clause 2.2). The leave entitlements clause should outline the amount and types of leave the drivers are entitled to, such as annual leave and sick leave. The notice periods clause should specify the required notice period for both the employer and the employee in case of termination.
Clause 2.1: Leave entitlements
The leave entitlements clause is crucial to define the rights and obligations regarding time off for the truck drivers. It should specify the types of leave the drivers are entitled to, such as annual leave, sick leave, and any other applicable leave policies.
The clause should outline the amount of leave, such as the number of annual leave days or hours per year, as well as the process for requesting and approving leave. It should also include any additional conditions or requirements for taking leave, such as notice periods or documentation needed.
Clause 2.2: Notice periods upon termination of employment
The notice periods clause is essential for establishing the procedures and expectations related to termination of employment, both for the employer and the employee. This clause should clearly state the required notice period that needs to be given by both parties in the event of termination. It should specify the length of notice based on the duration of employment or any other relevant factors.
Additionally, the clause may outline the consequences of failing to provide the required notice, such as potential deductions from salary or other applicable penalties. Clear notice periods help ensure a fair and orderly transition in case of termination, allowing both parties to plan ahead and make necessary arrangements.
Including these clauses in the employment contracts for truck drivers helps to establish clear expectations, rights, and obligations regarding leave entitlements and termination procedures. By providing clarity and transparency, these clauses contribute to a positive employment relationship, minimize potential disputes, and promote a fair and harmonious work environment.
To learn more about drafting employment contracts click here: brainly.com/question/32735711
#SPJ11
Rock Bottom Gold Company recently repurchased 7.16 million shares of its common stock for $45 per share. The intent of the repurchase was to increase earnings per share to be more in line with competitors:
Required:
1. Determine the impact of the stock repurchase on assets, liabilities, and stockholders' equity. (Negative amounts should be indicated by a minus sign. Enter your answers in whole dollars not in millions (i.e., 1,000,000 not 1.0).)
2. Prepare the journal entry to record the repurchase. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars not in millions (i.e., 1,000,000 not 1.0).)
To determine the impact of the stock repurchase on assets, liabilities, and stockholders' equity, we need additional information about the initial balance sheet of Rock Bottom Gold Company. Without this information, it's difficult to provide accurate figures. However, here is a general guideline of how the repurchase typically affects these elements:
Assets:
Cash: The company will decrease its cash balance by the amount spent on repurchasing the shares.
Investments: If the repurchased shares were classified as investments, their value would be reduced or eliminated from the balance sheet.
Liabilities: There is usually no direct impact on liabilities from a stock repurchase.
Stockholders' Equity:
Common Stock: The number of outstanding shares will decrease by the number of shares repurchased.
Additional Paid-in Capital: If the repurchase price per share is higher than the stock's par value, the excess amount initially recorded in additional paid-in capital will be reduced.
Retained Earnings: The retained earnings will decrease by the total cost of the repurchased shares.
Journal entry to record the repurchase:Assuming the repurchase was made from available cash, the journal entry to record the repurchase would be as follows:
Date: [Date of the Repurchase]
Account: Treasury Stock
Debit: [Number of repurchased shares] * [Repurchase price per share]
Account: Cash
Credit: [Number of repurchased shares] * [Repurchase price per share]
Learn more about Rock Bottom Gold Company here:https://brainly.com/question/33505832
#SPJ11
Mighty Sufe fire Alarm is currently buyng 60,000 motherbeards from Motherboard, incy at a priceiof $67 per board. Mightey Safe is considering making its awn boards. The costs to 577,000, Which opton should be selected and why?
Mighty Safe Fire Alarm is currently buying 60,000 motherboards from Motherboard, Inc. at a price of $67 per board. Mighty Safe is considering making its own boards.
The costs to make these boards are $577,000.
Option 1: Buying motherboards Cost: 60,000 * $67 = $4,020,000
Option 2: Making their own motherboards Cost: $577,000
Analysis: Since buying motherboards is cheaper than making their own motherboards ($4,020,000 > $577,000), Mighty Safe should continue to buy motherboards from Motherboard, Inc. at a price of $67 per board.
It's more financially efficient for Mighty Safe to continue purchasing motherboards from Motherboard, Inc. because making their own motherboards would be more costly ($577,000). Therefore, buying motherboards is the optimal option for Mighty Safe.
Learn more about Mighty Safe Fire Alarm, here:
https://brainly.com/question/24130600
#SPJ11
The AC per gardener is $350 and the MB per gardener for five residents are as follows:
1. If each voter is assigned a tax share of $50, what is the political equilibrium under majority rule?
2. At Lindahl equilibrium, what is the tax share for Megan?
A.50
B.25
C.150
D.0
1. When the total marginal benefit (MB) and total marginal cost (MC) of providing a public product are equal, majority rule political equilibrium is reached. The total MC in this instance is determined by adding the $350 per gardener cost of each individual gardener.
Since the question doesn't specify the five inhabitants' combined MB, it is impossible to calculate the precise political equilibrium. However, using the information provided, we can assess the circumstance. If each voter receives a $50 tax share, there would be a total of $250 in tax income (5 residents * $50 per resident). If the gardeners were paid for with this tax money, it would pay for the cost of 250 dollars ($350) divided by 714 gardeners. We must round up to have at least one gardener because we cannot have a fraction of a gardener. Therefore, the political equilibrium under majority rule would probably include paying one gardener and allocating a $50 tax burden to each inhabitant. 2. The Lindahl equilibrium is a tax burden distribution that enables each person to contribute their marginal willingness to pay (MWP) for the common good. We must ascertain Megan's tax portion at the Lindahl equilibrium in this situation. Once more, since the residents' specific MWPs are not available, we are unable to determine the precise Lindahl equilibrium. We can examine the available possibilities, though. Option D, in which Megan's tax portion is $0, wouldn't be feasible. a legitimate Lindahl equilibrium. Each person is supposed to provide their MWP in the Lindahl equilibrium, therefore having Megan make no contributions would be against this rule. Without knowing the inhabitants' MWPs and the total cost of the gardeners, options A, B, and C cannot be calculated. Therefore, based on the facts provided, we are unable to establish Megan's precise tax share at the Lindahl equilibrium.
learn more about marginal cost here:
https://brainly.com/question/28236069
#SPJ11
Leo Zhou intends to set up a business on 1 October 2022 . The revenue from the business is expected to be £90,000 in the first 12 months. All of Leo's sales are made direct to nonVAT registered customers and if he registers for VAT, he cannot increase his prices. Leo will buy £24,000 of goods for resale in the next 12 months. These goods are zero rated and will be sold within the first 12 months. Leo expects his other expenses (inclusive of VAT) to be as follows:
Office equipment £9,000
Business costs £6,000
The equipment will be depreciated over 7 years. As his turnover is expected to be below the VAT registration threshold of £85,000, Leo is unsure whether to register for VAT.
REQUIRED
a) Explain the requirements for VAT registration in the UK.
b) Calculate the VAT recoverable or payable by Leo in his first year of trading assuming he registers for VAT on 1 October 2022.
c) Evaluate whether it would be advantageous for him not to register for VAT. You should consider the impact on Leo's cashflow and accounting profit.
When the sales value of an individual or a company exceeds £85,000 within a 12-month period, they must register for VAT.
Alternatively, if they anticipate that their income will exceed this level, they should also register for VAT. If a company is required to register for VAT, it must do so within thirty days of becoming eligible.
How to find?b) Calculation of VAT recoverable or payable:
Revenues: £90,000
Goods purchased for resale: £24,000
Total purchases: £33,000 (excluding VAT)
Value Added Tax (VAT) at 20%: £6,600Revenues of £90,000 plus VAT of £18,000 equals £108,000.
The cost of goods sold was £24,000 plus VAT of £4,800, totaling £28,800.
Total expenses were £15,000 plus VAT of £3,000, totaling £18,000.
Pre-tax profit is £108,000 - £28,800 - £18,000 = £61,200.
VAT on the total cost of purchases (VAT on £24,000 goods for resale + VAT on £15,000 expenses)
= £4,800 + £3,000
= £7,800
VAT payable to HM Revenue & Customs = VAT on Sales - VAT on Purchases
= £18,000 - £7,800
= £10,200
Since the VAT on sales (£18,000) exceeds the VAT on purchases (£7,800), Leo is required to pay the difference, which is £10,200.
Therefore, Leo will have to pay VAT of £10,200 in his first year of trading if he registers for VAT.
c) Advantages and disadvantages of not registering for VAT:
Advantages:
The main advantage of not registering for VAT is that cash flow will not be affected by VAT payments, which means more cash will be available for other company needs. It will also save Leo time and money by not having to register and maintain VAT records, submit VAT returns, or keep up with VAT regulations. As his company grows and his sales increase, he may reconsider registering for VAT.Disadvantages:
If Leo is not registered for VAT, he will be unable to claim back the VAT on his expenses. This means he will be paying more for the same items than his VAT-registered competitors. This may increase his costs, making him less competitive in the market. Additionally, not being registered for VAT may hurt the company's image because it may appear to be too small or unprofessional.To know more on VAT visit:
https://brainly.com/question/20628016
#SPJ11
Which of the following is NOT one of the recommended seven key aspects of service that should be reflected in metrics? Averoge handing times Resource management Accossibinity Emplowed engagement Question 2(1 point) surnd What are the two recommended areas of focus when measuring individual customper representative berformance? Adverence to sthedule and qualify Average tirse wish custemers and quality Averase time with customers and stherenos to schetult
The answer to question 1 is "Emplowed engagement." The answer to question 2 is "Average time with customers and adherence to schedule" or "Average time with customers and quality."
The recommended seven key aspects of service that should be reflected in metrics are typically related to factors such as average handling times, resource management, accessibility, customer satisfaction, service quality, first-call resolution, and customer loyalty. "Emplowed engagement" is not commonly included as one of these key aspects.
The two recommended areas of focus when measuring individual customer representative performance are "Average time with customers and adherence to schedule" or "Average time with customers and quality." These two areas of focus help assess the efficiency and effectiveness of individual customer representatives in terms of their time management, adherence to scheduled appointments or interactions, the quality of interactions with customers, and the overall customer experience.
By measuring and evaluating these aspects, organizations can gauge the performance and productivity of their customer representatives and identify areas for improvement in delivering satisfactory customer service.
Learn more about customer loyalty here:
https://brainly.com/question/30160571
#SPJ11
Today's price of the Apple Inc. (AAPL) stock is S
0
=$175. An investor instructs a broker to sell 100 European call options ( =1 call option contract) as well as 100 European put options (=1 put option contract) written on Apple stock with a strike price of K=$175 and maturity T on September 16, 2022 (that is, in exactly four weeks). The European call options are currently trading for $5.00 per option and the European put options are currently trading for $4.50 per option. (a) What is the payoff function of the investor's position at maturity T as a function of the then prevailing Apple stock price S
T
? Sketch the graph of the function and add suitable annotations. (b) What is the profit and loss of the investor's position at maturity T as a function of the then prevailing Apple stock price S
T
? Sketch the graph of the function and add suitable annotations. (c) What is the maximum possible profit and what is the maximum possible loss for the investor at maturity T ? (d) For which stock prices S
T
does the investor make a strictly positive profit? (e) What is the investor speculating on with her option strategy?
The investor's position in selling 100 European call options and 100 European put options on Apple stock allows them to speculate on significant price movements in either direction. The payoff function, profit/loss, maximum profit, and maximum loss are determined by the stock price at maturity compared to the strike price and the initial cost of purchasing the options.
(a) The payoff function of the investor's position at maturity T as a function of the then prevailing Apple stock price S_T can be determined by considering the outcomes of both the call and put options.
For the call options, the payoff function is Max(0, S_T - K), where K is the strike price. This means that if the stock price at maturity is greater than the strike price, the investor will receive the difference as profit. Otherwise, the call option expires worthless.
For the put options, the payoff function is Max(0, K - S_T). If the stock price at maturity is lower than the strike price, the investor will receive the difference as profit. Otherwise, the put option expires worthless.
The overall payoff function of the investor's position is the sum of the payoff functions of the call and put options:
Payoff = 100 * Max(0, S_T - K) - 5.00 * 100 + 100 * Max(0, K - S_T) - 4.50 * 100
(b) The profit and loss of the investor's position at maturity T can be determined by subtracting the initial cost of purchasing the options from the payoff function. The profit and loss function is:
Profit/Loss = Payoff - (5.00 * 100 + 4.50 * 100)
(c) The maximum possible profit for the investor at maturity T is unlimited if the stock price rises significantly above the strike price. The maximum possible loss is limited to the initial cost of purchasing the options, which is (5.00 * 100 + 4.50 * 100).
(d) The investor makes a strictly positive profit when the stock price at maturity exceeds the total cost of purchasing the options, which is (5.00 * 100 + 4.50 * 100).
(e) With this option strategy, the investor is speculating on the price movement of the Apple stock. By selling both call and put options, the investor is taking a neutral or "straddle" position, betting that the stock price will either increase significantly above the strike price or decrease significantly below the strike price. The investor profits from large price swings in either direction.
To calculate the specific values of the payoff, profit/loss, and the range of stock prices for a positive profit, we would need the actual stock price at maturity T. Without that information, we can only provide a general understanding of the investor's position and strategy.
The investor's strategy relies on the expectation of large price swings, and their profit is maximized when the stock price exceeds the total cost of the options. It's important to note that the specific outcomes and profitability of the position depend on the actual stock price at maturity.
To know more about movements ,visit:
https://brainly.com/question/26439172
#SPJ11
A process for producing the mosquito repellant Deet has an initial investment of $220,000 with annual costs Income is expected to be $90,000 per year. What is the payback period at i=0% per year? At i=12% per year? (Note: Round your answers to the nearest intege
The payback period at i=0% per year is approximately 2.44 years, and the payback period at i=12% per year is 3 years.
The payback period is a financial metric that measures the time required to recover the initial investment in a project. It indicates how long it takes for the project's cash flows to equal or exceed the initial investment. To calculate the payback period, we need to determine in which year the cumulative cash inflows equal or exceed the initial investment.
In this case, the process for producing Deet has an initial investment of $220,000 and an annual income of $90,000. To calculate the payback period at different interest rates, we need to consider the discounted cash flows.
At i=0% per year, the payback period is determined by dividing the initial investment by the annual income:
Payback Period = Initial Investment / Annual Income = $220,000 / $90,000 = 2.44 years
At i=12% per year, we need to calculate the present value of the cash flows using the discount rate and then determine the year when the cumulative present value equals or exceeds the initial investment. Since the annual income remains constant, we can use the perpetuity formula to calculate the present value:
Present Value = Annual Income / Discount Rate = $90,000 / 0.12 = $750,000
To find the payback period, we subtract the present value of each year's cash flow from the initial investment until the cumulative present value is equal to or greater than the initial investment.
Using Excel or a similar software, we can calculate the payback period at i=12% per year. By subtracting the present value of each year's cash flow from the initial investment, we can determine the year in which the cumulative present value exceeds $220,000. The payback period is the integer part of the year, and in this case, it is 3 years.
In summary, the payback period at i=0% per year is approximately 2.44 years, and the payback period at i=12% per year is 3 years. The payback period provides insights into the time it takes to recoup the initial investment and is useful for evaluating the profitability and risk of a project.
Learn more about payback period here :
brainly.com/question/28304736
#SPJ11
Under the Corporations Act 2001, the significance of being a large proprietary company instead of a small proprietary company is: a. a large proprietary company must keep accounting records. b. - a large proprietary company must prepare audited financial statements each financial year and place them on the public record with ASIC. c.) a large proprietary company must prepare financial statements for each half year in addition to each financial year. d. a large proprietary company has more shareholders and directors than a small proprietary company.
a. The significance of being a large proprietary company instead of a small proprietary company is that a large proprietary company must prepare audited financial statements each financial year and place them on the public record with ASIC.
Large proprietary companies are required to conduct an annual audit of their financial statements, ensuring greater financial transparency. These audited financial statements must be made available to the public through the Australian Securities and Investments Commission (ASIC). This requirement aims to provide stakeholders and investors with reliable and verified financial information about the company's performance and financial position. Small proprietary companies, on the other hand, are exempt from this obligation.
Learn more about ensuring here:
https://brainly.com/question/1040519
#SPJ11
Why is Cost Volume Profit analysis more useful and important to
small business owners, rather than to managers of large
entities?
Cost-Volume-Profit (CVP) analysis is more useful and important to small business owners than to managers of large entities because cost and volume are the most crucial factors in small businesses. They can quickly adjust their cost structure to adapt to a change in volume, which may not be possible in a large business.
Small businesses, particularly startups, require cost-volume-profit analysis to figure out the point at which the company breaks even.
Here's why Cost Volume Profit analysis is more useful and important to small business owners than to managers of large entities: CVP is a crucial tool for small business owners who are just starting because they need to know how many goods or services they must sell to break even.
CVP analysis aids small business owners in assessing their break-even point, which assists them in planning, budgeting, and forecasting.
Small business owners can use CVP analysis to assess various what-if scenarios, such as how many additional sales they must make to cover an unexpected cost overrun or how much additional income they would need to expand their product line. Larger businesses have a more complicated cost structure, which means that CVP analysis may not be as effective.
Furthermore, their operational expenses may include expenses that are not immediately apparent and cannot be allocated to a specific product or service. In contrast, small businesses have fewer variables, making it simpler to use the CVP analysis.
CVP analysis is more beneficial for small business owners, particularly those who are just starting because they must keep a close eye on the bottom line. As a result, CVP analysis is critical to their financial health.
Read more about CVP at https://brainly.com/question/27995701
#SPJ11