A shift in the sales mix from high-margin items to low-margin items can cause total profits to decrease even though total sales may increase.
Answer the following statement true (T) or false (F)
True
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Discounting is the process of dividing a future value by the ________ to obtain the ________ value.
A. discount factor; past B. discount factor; present C. rate of discount; past D. rate of discount; present
Ambient noise such as a thunderstorm, music from the computer, or a TV show in the background fall under the category of ______ distractions.
a. medium b. source c. bias d. situational
Accelerated Finance is deciding whether to purchase new accounting software. The cost of the software package is $59,000, and its expected life is ten years. The payback for this investment is four years. Assuming equal yearly cash inflows, what are the expected annual net cash savings from the new software? (Assume the investment has no residual value.)
A) $5,900 B) $44,250 C) $14,750 D) $236,000
Describe the inventory function that a firm is relying on when it purchases inventory in advance of expected high demand. Give at least one example of this type of inventory management decision.
What will be an ideal response?