A steel manufacturer experienced a decrease in its fixed asset turnover from .9 in Year 5 to .7 in Year 6 . This change is consistent with which of the following explanations?
a. The firm sold a fully-depreciated factory on January 1, Year 6 that had been closed in Year 4 and held for sale since then.
b. The steel industry operated at capacity during Year 6, permitting all firms to raise selling prices.
c. The firm recognized an impairment loss on a factory that became obsolete during Year 6 because of new environmental regulations.
d. The firm decreased the number of units produced and sold because of an inability to obtain needed raw materials.
e. none of the above
D
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Auditors test the assertion of completeness by determining if any restrictions on the use of commercial paper by an entity are disclosed in the footnotes
a. True b. False Indicate whether the statement is true or false
The manager of Kenton Company stated that 45% of its total costs were fixed. The manager was describing the company's:
A. cost averaging. B. contribution margin. C. operating leverage. D. cost structure.
Which one of the following is not a characteristic generally evaluated in ratio analysis?
A) Liquidity B) Profitability C) Solvency D) Marketability
Supply costs at Coulthard Corporation's chain of gyms are listed below: Client-Visits Supply CostMarch12,855 $23,598April12,283 $23,278May13,104 $23,742June12,850 $23,607July12,493 $23,415August12,794 $23,562September12,686 $23,496October12,765 $23,541November13,018 $23,687Management believes that supply cost is a mixed cost that depends on client-visits. Use the high-low method to estimate the variable and fixed components of this cost. Compute the variable component first, rounding off to the nearest whole cent. Then compute the fixed component, rounding off to the nearest whole dollar. Those estimates are closest to: (Round your intermediate calculations to 2 decimal places.)
A. $0.55 per client-visit; $16,579 per month B. $0.57 per client-visit; $16,273 per month C. $1.85 per client-visit; $23,547 per month D. $1.77 per client-visit; $557 per month