If a product or other segment of a business is generating a loss, it is erroneous to assume that the total company income will increase by eliminating the product line or other segment of the business generating the loss.

a.This statement is true.
b.This statement is true only for manufacturing companies.
c.This statement is true only for service companies.
d.This statement is false.

Answers

Answer 1

Answer:

a.This statement is true.

Explanation:

The loss generating segment of a business might be generating a contribution towards the firms` common fixed overheads thus, it would be erroneous  to assume that the total company income will increase by eliminating the product line or other segment. Eliminating this product line or other segment might result in loss of a contribution to cover the fixed costs.


Related Questions

How will the price and output of an unregulated monopolist compare with the ideal levels that might be reached if the market was competitive

Answers

Answer:

The correct answer is "The output of the monopolist will be smaller and the price higher".

Explanation:

Along with every other company, an unregulated monopolist tries to determine the optimal number of price/production which might maximize its income. To do the same, demand must be increased so that marginal income, or increased income from either the selling of one individual bonus, is equivalent to its marginal costs, or perhaps the increased expense through one increased selling.

The local florist advertises a discount on arrangements during the month of April because the anniversary of the store's opening is in April. This is an example of special-event pricing.

a. True
b. False

Answers

True. Have a nice day

Promotion tends to a. overemphasize physiological and safety needs. b. capitalize on existing needs. c. avoid focusing on people's needs. d. create needs. e. be overly focused on the self-actualization needs. 1 points QUESTION 41

Answers

Answer:

b. capitalize on existing needs

Explanation:

The promotion is the marketing strategy in which the firm promotes its products via advertising through social sites, television, radio, newspaper, etc

so that it can create awareness among the people

Here the promotion tends to capitalize on the needs i.e existed in nature

Therefore the same is to be considered and all other options are incorrect

Windsor Co. incurs $1110375 of overhead costs each year in its three main departments, machining ($630000), inspections ($315000) and packing ($165375). The machining department works 4000 hours per year, there are 600 inspections per year, and the packing department packs 1000 orders per year. Information about Windsor’s two products is as follows: Product X Product Y Machining hours 1000 3000 Inspections 100 500 Orders packed 350 650 Direct labor hours 1700 1800 If traditional costing based on direct labor hours is used, how much overhead is assigned to Product X this year?

Answers

Answer:

$539,325 is assigned to Product X this year.

Explanation:

First determine the overhead absorption rate.

overhead absorption rate = budgeted overheads ÷ budgeted labor hours

                                           = $1,110,375 ÷ (1,700 + 1,800)

                                           = $317.25 per labor hour.

Then find Overhead Assigned to Product X

Overhead Assigned to Product X = overhead absorption rate × activity

                                                        = $317.25 × 1,700

                                                        = $539,325

the fair value of Carley is estimated to be $720,000. The carrying value of Carley’s net identifiable assets, including the goodwill, at year-end is $750,000. Prepare Vinson’s journal entry, if necessary, to record impairment of goodwill.

Answers

Answer:

A.$200,000

B.Dr Loss on impairment $30,000

Cr Goodwill $30,000

Explanation:

(a) Computation of the amount of goodwill acquired by Vinson

Purchase price$900,000

Fair value of net assets $700,000

(Fair value of assets $950,000-

Fair value of liabilities $250,000)

Value assigned to goodwill $200,000

($900,000-$700,000)

(b) Preparation of Vinson’s journal entry to record impairment of goodwill.

Based on the information given we were told

the fair value of Carley is the amount of $720,000 while the implied fair value of goodwill is the amount of $170,000 and we were also told that carrying value of Carley’s net assets as well include the goodwill which is the amount of $750,000 which means that their is loss on impairment because the fair value amount is lower than carrying value which means that the journal entry to record impairment of goodwil will be ;

Dr Loss on impairment $30,000

($200,000 − $170,000)

Cr Goodwill $30,000

A seller sold a house to a buyer allowing the buyer to take over the loan on a "subject to" basis. After 2 years, the buyer defaulted on the loan. Who would be liable to the lender for the note?

Answers

Answer:

The Seller would be primarily liable

Explanation:

Since in the question, it is mentioned that the seller had sold a house to a buyer for taking up the loan i.e. based on a subject. But after two years the buyer does the default and does not pay the money.

Therefore for lending the note, the seller is primarily liable as the seller permit the buyer for taking the loan

The approach to quality management which advocated the need for quality control and provided the foundations for statistical sampling in quality control is the contribution of:

Answers

Answer:

Walter Shewart

Explanation:

Most modern control measures that give priority to quality control and statistical sampling in quality control can be traced to Walter Shewart .

Walter Shewart , nicknamed the grandfather of Total Quality Management developed a statistical process control approach to quality management to aid managers in making an efficient ,effective and economical decision.

In respect to statistical sampling and analysis , he developed the Shewart  learning and improvement cycle combining creative management thinking and with statistical analysis.

Alternative methods exist for the measurement of the pension obligation (liability). Which measure requires the use of future salaries in its computation

Answers

Answer: Projected benefit obligation

Explanation: The projected benefit obligation is a method employed in the calculation of pension liability or expenses. The projected benefit obligation determines the amount an organization will have to sidea side into a pension benefit scheme or plan which will be adequate enough to cater for the pension or entitlement of the company's employees while also incorporating expected Increment in salaries of workers in it's computation. In preparing a projected benefit obligation, factors which are considered and incorporated in the calculation includes but not limited to ; future rise in employees salaries, estimated years of service.

In accounting, the measure that requires the use of future salaries in its computation is projected benefit obligation.

What is projected benefit obligation?

A projected benefit obligation can be regarded as an actuarial measurement of the nerds of a company so as as to cover future pension liabilities at that time.

It should be noted that projected benefit obligation always take an assumption that there wont be a terminated plan in foreseeable future.

Therefore, Alternative methods exist for the measurement of the pension obligation can be regarded as projected benefit obligation.

Learn more about projected benefit obligation is:

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GameStop sells only video games and systems, offering a narrow product line with a deep assortment within that line. GameStop is a(n) ________.

Answers

Answer: specialty store

Explanation:

Specialty store is a store that concentrate on collection of brands within a particular category of products. They focus on specific product retail. Examples are book selling shops, game stores, furniture stores.

If Julie spends the weekend working, should she later initiate an executive discussion of the bank’s espoused values and principles in regard to issues of work–life balance for their employees? Support your position.

Answers

Answer:

Yes she should.

Explanation:

Julie should initiate an executive discussion of the bank's values and principles that support issues of work life because according to the above scenario, she has been at work during weekends hence does not have time for her family. While everyone knows that family comes first, the issue of work life balance must be taken seriously because asides the time for annual vacation, the only other time she has for her family is on weekends.

Julie should inform them of how hardworking she has been and working on weekends means she will no longer have time for her family hence could drift them apart. Also, she should explain how she value her life hence needed to also rest on weekends. Where all of theses discussions are not acceptable by the management or they rather insisted she works on weekends, then she might have to call it quit, which shows that the management does not stay true to their commitment on issues of work life balance for their employees.

In the book, Service America, there are two basic kinds of service. One is "Help Me" and the other is "_____________".

Answers

Answer: Fix it

Explanation:

Service America is a book that does how business can be done in America and is still regarded as a classic, the book showed the importance of the service management and how it'll affect the economy.

In the book, Service America, there are two basic kinds of service. One is "Help Me" and the other is Fix it.

If the required reserve ratio is 10% and the Fed buys $5 billion worth of securities, then the maximum potential change in the money supply will be a(n):

Answers

Answer:

increase in money supply by $50 billion

Explanation:

required reserve ratio is the ratio of deposits that banks must keep with the central bank as reserves.

If the FED buys securities money supply would increase.

change in money supply = amount / required reserve ratio

= $5 billion / 0.1 = $50 billion

"The person who shares in selling responsibility and liability, but who does not have decision making authority in a new issue syndicate, is known as the:"

Answers

Answer:

Syndicate members

Explanation:

Syndicate members are commercial or investment banks, usually registered with market regulator, Sebi in India, or registered as brokers with stock exchanges, responsible for underwriting IPOs. They work

An investment adviser has placed an order with the underwriter for 250,000 shares of XYZ stock, a new company that will be listed on NASDAQ. The adviser will allocate this purchase to its largest discretionary accounts. This action is a(n):

Answers

Complete Question:

An investment adviser has placed an order with the underwriter for 250,000 shares of XYZ stock, a new company that will be listed on NASDAQ. The adviser will allocate this purchase to its largest discretionary accounts. This action is a(n):

Group of answer choices

A. breach of fiduciary duty

B. front-running violation

C. fair and reasonable practice

D. insider trading violation

Answer:

breach of fiduciary duty.

Explanation:

In this scenario, an investment adviser has placed an order with the underwriter for 250,000 shares of XYZ stock, a new company that will be listed on NASDAQ. The adviser will allocate this purchase to its largest discretionary accounts. This action is a breach of fiduciary duty.

According to the Securities and Exchange Commission (SEC), if a registered investment adviser favours a client over another while allocating a block, it simply means that the registered investment adviser has violated his or her fiduciary duty to the other customers who were denied a piece of the block.

vegetables wilt of soften and their color intensifies as they

Answers

Answer: boil

Explanation:

Answer:

Saute

Explanation:

Vegetables wilt and soften when sauteing for example spinach, bokchoy and kale to name a few.

A store that advertises a buy one get one free sale is

Answers

Answer:

BOGO

Explanation:

i looked it up on Google

Buy one get one free is known as BOGO hopefully that is what your asking if not write back so we can figure it out together!

Because many discount stores are providing more services and better shopping environments, the distinction between discount stores and __________ stores is becoming blurred.

Answers

Answer:

The correct answer will be "department".

Explanation:

Leading manufacturing institutionalization, coordinated into different organizations with nothing but a profound comprehension of products and services throughout wide assortment or even just wide variety. To encourage or enhance the order, client care, merchandising, management control, all branches are headquartered underneath the common roof.

So that the above would be the correct choice.

ABC Company estimates total overhead costs to be $1,200,000 and will apply overhead to units produced based on 200,000 estimated machine hours. During the year ABC Company incurred actual overhead costs of $1,250,000 and achieved 250,000 machine hours. ABC Company's predetermined overhead rate is:

Answers

Answer:

$6 per machine hour

Explanation:

Predetermined overhead rate=Estimated total overhead/Estimated machine hours

Predetermined overhead rate = $1,200,000 / 200,000 hours  

Predetermined overhead rate = $6 per machine hour.

Thus, the predetermined overhead rate is $6 per machine hour

In Texas, the state and local governments can both levy sales taxes. These general state and local sales taxes can combine to reach a rate of _________ percent.

Answers

Answer:

8.25

Explanation:

The answer is that these general state and local sales taxes can combine to reach a rate of 8.25 percent because the state has a sales tax rate of 6.25% but the local jurisdictions can also establish a sales tax rate that can be up to 2% and when they are combined, you have a maximum of 8.25%.

The payments made by a firm to repurchase shares of its outstanding stock from an individual investor in an attempt to eliminate a potential unfriendly takeover attempt are referred to as:

Answers

Answer:

Greenmail

Explanation:

Greenmail is when a firm that is under the threat of a potential hostile takeover attempt buys the outstanding shares of the individual that is posing the hostile takeover threat. this purchase is usually at a premium to market price.

What's the present value of a 4-year ordinary annuity of $2,250 per year plus an additional $3,000 at the end of Year 4 if the interest rate is 5%? Select one: a. $9,428 b. $10,446 c. $8,509 d. $8,957

Answers

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Cash flow= $2,250

n= 4

i= 5%

Additional investment= $3,000

First, we need to calculate the future value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {2,250*[(1.05^4) - 1]} / 0.05

FV= 9,697.78 + 3,000

FV= $12,697.78

Now, the present value:

PV= FV/(1+i)^n

PV= 12,697.78/(1.05^4)

PV= $10,446.5

A company purchased a 12 month insurance policy on October 1 for $1,200. On the December 31 annual financial statements, ______.

Answers

Answer:

$300 is reported as a expense

Explanation:

and $900 is reported as an asset hope this helps you :) god loves you :)

A company purchased a 12-month insurance policy on October 1 for $1,200. On the December 31 annual financial statements $300 is reported as an expense.

What is meant by  insurance policy?

The insurance policy is a contract, typically in standard form between the insurer and the policyholder, that identifies the claims that the insurer is required by law to pay.

Next, we take a closer look at the three most important insurance subcategories: life, liability, and property.

Insurance coverage is the amount of risk, responsibility, or potential loss that an insurance policy covers. It helps consumers make up for financial losses caused by unexpected occurrences like car accidents, property damage, or unforeseen medical issues.

Thus, $300 is reported as an expense.

For more details about  insurance policy, click here:

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On July 1, R. Selleck and M. Monroe formed a partnership to provide legal services to clients. Selleck's investment is $10,000. Monroe's net investment is also $10,000, but it is comprised of cash ($15,000) and a note payable reflecting a bank loan for the new business ($5,000).

Required:
Record both investments in a single compound journal entry by selecting the account names and dollar amounts from the drop-down menus.

Answers

Answer and Explanation:

The journal entry is shown below:

Cash    Dr $25,000

           To Note payable   $5,000

          To Selleck Cap   $10,000

          To Monroe Cap $10,000

(Being the both investments are recorded)

Here we debited the cash as it increased the assets by $25,000 and credited the notes payable, Selleck, and the Monroe capital as it increased the liabilities and the stock holder equity

You think hard about how to allocate the next hour between watching football and going for a walk. You decide to spend the first 40 minutes watching football and the remaining 20 minutes going for a walk. Your decision is an example of​ _______.

Answers

Answer:

Making a choice at the margins

Explanation:

Making a choice at the margins is when you decide to do more or less of an activity instead of doing it or not and in order to make the decision you analyze the benefit and the cost of spending more time doing that specific activity. According to this, the answer is that your decision is an example of making a choice at the margins  because you decide how to spend an hour between watching football and going for a walk.

Monica, a project manager at a software firm, learns during a status report meeting that a difference exists between the baseline scope and the actual project performance. What does Monica need to do next?

Answers

Answer:

Analyze the variance

Explanation:

In a situation like this, it is expected that the project manager identifies the differences or variance which exists between the baseline scope and actual project performance. It is however when the variance has been analyzed, then the project manager can conclude whether a change in scope is needed or not.

Hence, in this case, what Monica need to do next is to ANALYSE THE VARIANCE

McDonald's serves McRice Burger in Malaysia, McOZ Burger in Australia, Kiwi Burger in New Zealand, McHuevo Burger in Uruguay and McSamurai Burger in Thailand. These menu variations are examples of a:

Answers

The question is incomplete:

McDonald's serves McRice Burger in Malaysia, McOZ Burger in Australia, Kiwi Burger in New Zealand, McHuevo Burger in Uruguay and McSamurai Burger in Thailand. These menu variations are examples of a:

a. A combination of global and local marketing mix elements

b. a selection of menu items that can be sold eventually in U.S. markets

c. A replacement of standard menu names with fancy names

d. a deviation from successful marketing practices

e. a reflection of failure of US menu items in those countries

Answer:

a. A combination of global and local marketing mix elements

Explanation:

The answer is that these menu variations are examples of a combination of global and local marketing mix elements  because the company tries to position its products on a global scale but also adjusts its strategies locally to adapt the placement and distribution to the specific characteristics of each country.

The other options are not right because McDonalds is adjusting its offer in its market to be able to establish its position in that market and not to be able to sell the items in US markets or to replace standard menu names. Also, this is the result of analyzing how to better position in a new market and not a failure of US menu items in those countries.

Answer:

A combination of global and local marketing mix elements

Explanation:

A contractual agreement in which one firm permits another to produce and market its product and use its brand name in return for a royalty or other compensation is known as:

Answers

This question is incomplete because the options are missing; here is the complete question:

A contractual agreement in which one firm permits another to produce and market its product and use its brand name in return for a royalty or other compensation is known as:

A. Joint venture.

B. Licensing.

C. Countertrade.

D. Strategic alliance.

E. Export-import agent.

The correct answer is B. Licensing

Explanation:

In businesses, licensing refers to a type of agreement between two companies or firms that involves one of the firms is allowed to use the brand, model, and other business elements of the other firm. This often involves the firm can produce the product of the other firm for a time. Moreover, in compensation, the firm whose product is being produced receives money or any other benefit. This type of agreement is often beneficial for the two firms involved because the firm sharing its model and product can expand its popularity, while the other firm can obtain profits. This agreement is the one described because only in this one firm permits another to use its brand and produce its product.

In the IS-LM model, if government spending rises by $1,000 and if the marginal propensity to consumer is equal to 0.90, then equilibrium output will rise by

Answers

Answer:

Equilibrium output will rise by $10,000.

Explanation:

Marginal propensity to consume (MPC) shows the change in the amount consumption expenditure by consumer as a result of change in the national income.

In order to calculate the amount by which equilibrium output will rise, we need to first calculate the multiplier as follows:

Multiplier = 1 / (1 - MPC) = 1 / (1 - 0.9) = 1 / 0.1 = 10

Since we also have:

Amount of rise in government spending = $1,000

Therefore, we have:

Effect $1,000 rise in government spending on equilibrium output = Amount of rise in government spending * Multiplier = $1,000 * 10 = $10,000

Therefore, equilibrium output will rise by $10,000.

When negotiating, the tendency is to want to win! Why is this not a good approach when managing contracted relationships

Answers

Answer:

All of these are reasons a competitive approach to negotiation should not be used when managing contracted relationships.

Explanation:

Negotiation may be defined as a dialogue that is carried between two or sometimes more than two people or parties that are intended to reach a beneficial result or an outcome over some issues where there is a conflict between the people or parties.

It is suggested that while negotiating with the contracted parties, it is not always good to have the winning tendency --

-- such approach may cause some dysfunctional conflict to rise and then negotiations to break down.

-- this kind of approach inhibits a degree of trust and also the cooperation needed for the partners to work

When some countries increase their imports as a result of worldwide economic growth, other countries must be increasing their:___________

Answers

Answer:

exports as demand in all countries substantially rises.

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