You need to know more than just facts in order to use critical thinking skills.

Firms with high capital intensity ratios have found ways to lower this ratio permitting them to achieve a given level of growth

Maslowich

Answer: True

Explanation:

The capital intensity ratio of a company

is used to measure the amount of capital that is required per dollar of revenue. The capital intensity ratio is calculated when the total assets that a company has is divided by its sales.

It should be noted that firms that has high capital intensity ratios have found ways to lower this ratio which allows them to achieve a given level of growth with fewer assets and consequently less external capital.

7 0

2 years ago

The following selected account balances are provided for Delray Mfg.

Marina CMI [18]

Answer:

DELRAY MFG.

Income Statement

For the year ended December 31, 2017

Sales $1,250,000

Cost of goods sold 623,840

Gross profit 626,160

General and

Administrative expenses 129,300

Net Income $496,860

DELRAY MFG.

Statement of Cost of Goods Sold

For the year December 31, 2017

Raw Material

Raw material, beginning $37,000

Add: Purchases 175,600

Raw materials available $212,600

Less: Raw material, end 42,700

Cost of raw material used 169,900

Add: Direct labor 225,000

Prime Cost 394,900

Add: Manufacturing overhead 221,090

Manufacturing cost 615,990

Add: Work in process, beginning 53,900

Less: Work in process, Ending 41,500

Cost of Goods Manufactured 628,390

Add: Finished goods, beginning 62,750

Cost of goods available for sale 691,140

Less: Finished goods, ending 67,300

Cost of goods sold $623,840

Explanation:

Income statement is computed by deducting cost of goods sold from the sales of the period to get the gross profit, then deduct the general and administrative expenses to get the net income for the period.

To compute cost of goods sold it started from the raw materials beginning inventory then add the purchases of the raw materials including the handling cost to get the raw materials available. Then deduct the raw materials end to get the cost of raw material used for the period. Add direct labor to get the prime cost and then add manufacturing overhead to the prime cost to get the manufacturing cost. Lastly, add work in process beginning and deduct the work in process end to get the cost of goods manufactured then add the finished goods beginning to get the cost of goods available for sale. And from there we deduct the finished goods ending inventory to get the cost of goods sold for the period.

6 0

2 years ago

Necesito saber si es cierto o falso

Zanzabum

La respuesta correcta es Falso

Explicación:

El excedente de producción se refiere a la cantidad de dinero que obtiene un productor al producir y vender un producto. En este contexto, el excedente de producción puede ser calculado si al precio o valor de compra se resta el costo de oportunidad de producirlo (costo por producir un bien específico en vez de sus alternativas), así como otros costos de producción. De acuerdo a lo anterior la premisa es falsa porque el costo de oportunidad debe ser restado y no sumado al precio para saber cual fue la ganancia o excedente de producción.

6 0

2 years ago

a company's actual results for revenues, net profits, EPS, and ROE turn out to be worse than projected, then it is usually becau

rewona [7]

A firm might lose its sales revenue and market share if it is unable to respond rivals market strategy to acquire market share. In the given case most probably the firm lost its market share to its rival due to their exerted efforts in one or more.

7 0

2 years ago

People are going to be different. The focus of managers should be to ________. Group of answer choices make sure the practices w

Solnce55 [7]

Answer:

find ways to develop strong relationships with and engage the entire workforce.

Explanation:

People are going to be different. The focus of managers should be to find ways to develop strong relationships with and engage the entire workforce.

A manager can be defined as an individual who is saddled with the responsibility of providing guidance, support, supervision, administrative control, as well as acting as a role model or example to the employees working in an organization by being morally upright.

Generally, managers are typically involved in taking up leadership roles and as such are expected to be build a strong relationship between their employees or subordinates by creating a fair ground for effective communication and sharing of resources and information. Also, they are required to engage their staff members (entire workforce) in the most efficient and effective manner.

5 0

2 years ago