Why and how do managers simplify analyses for achieving a given level of profit with two products or services?
What will be an ideal response?
Without some assumptions, there is an infinite number of combinations of the two services that would achieve a given level of profit. To simplify matters, managers often assume a particular product mix and compute break-even or target volumes using either of two methods, a fixed product mix or weighted-average contribution margin, both of which give the same result.
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An accountant may be forced by a subpoena to make available to the Internal Revenue Service (IRS) working papers involving a client who is being investigated.
Answer the following statement true (T) or false (F)
If the conditions are met, a qualified promise becomes a covenant
Indicate whether the statement is true or false
Tanisha is CEO of a multinational corporate event planning firm. What would make it unappealing to her to consider diversification into a new industry such as lodging by forming an internal startup subsidiary to enter and compete in the target industry?
A. when a company possesses the skills and resources to overcome entry barriers and there is ample time to launch the business and compete effectively B. when incumbent firms are likely to be slow or ineffective in combating a new entrant's efforts to crack the market C. when internal entry is cheaper than entry via acquisition D. when the industry is growing rapidly and the target industry is comprised of several relatively large and well-established firms E. when adding new production capacity will not adversely impact the supply demand balance in the industry by creating oversupply conditions
Activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as:
A. Direct activities. B. Indirect activities. C. Operating activities. D. Investing activities. E. Financing activities.