Balance Sheet ($ in Millions) Income Statement ($ in Millions) Liabilities and Owners' Equity Assets 1998 1998 1998 Current Assets Current Liabilities Sales 2900 Cash 600 Accounts Payable 300 Cost of Goods Sold 2400 Accounts Receivable 600 Notes Payable 700 Administrative Expenses 100 Inventory Total Current Liabilities 400 1000 Depreciation 197 Total Current Long-Term Earnings Before 203 1600

Q: How are the ratios useful?

A: Answer: Ratio analysis is allowing a comparison two firm’s annual financial statement using certain…

Q: Define the term Current ratio with example.

A: Ratio analysis: It is the financial analysis tool for measuring the profitability, liquidity,…

Q: Cost-Savings Sharing Pricing Defined?

A: It is a project pricing technique where the savings in the cost of the project are mutually shared…

Q: Explain the implementation issues of the cost estimation methods

A: Cost estimation is the process of determining the probable cost of a product before starting the…

Q: Pe ratio formula?

A: PE(Price-to-earnings) ratio is used to determine the relative valuation for companies having…

Q: Define cost-volume-profit analysis?

A: Cost-Volume-Profit Analysis (CVP Analysis): CVP Analysis is a tool of cost accounting that measures…

Q: Define product cost

A: Direct costs is referred to as the cost which can be traceable to a product directly. Example,…

Q: Define Cost effectiveness.

A: Cost effectiveness refers to the examination of both cost and health outcomes of different course of…

Q: Assign costs to unitsusing the weighted-averagemethod.

A: Cost:   It refers to the economic value incurred by an organization for manufacturing a product or…

Q: What are solvency ratios and what do they measure?

A: Solvency ratios of the company indicates that whether cash flows of the company are sufficient to…

Q: Explain the measures of cost allocation.

A: The company incurs a different cost to provide goods and services to the customers. The entity…

Q: Examples of transaction costs

A: Transaction costs are the costs which occur during buying or selling of services and goods. They are…

Q: What ratio, profit, target, or margin is the most important?

A: Accounting Accounting refers to the keeping of a systematic record of business transactions…

Q: Distinguish between a cost center, a profit center, and an investment center

A: Definition: Responsibility center: A department or unit of a corporation where the management…

Q: how to compute quantity/efficiency variance

A: Cost accounting is beneficial since it can demonstrate where a corporation spends money, earns…

Q: ompare and contrast Liquidity ratio and solvency rati

A: Analysis of the company's financial statements, such as the balance sheet and income statement, can…

Q: Describe and apply methods of vertical analysis.

A: Vertical analysis is the method which is helpful for financial statement analysis under which each…

Q: Explain gaining ratio

A: Introduction:- Gaining ratio may be defined as Gaining ratio is a type of financial tool, which…

Q: what is weighted average cost method?

A: The weighted average cost method is one of the methods to ascertain the unit cost of a product. It…

Q: Explain unit sales.

A: Sales: Sales means the goods and services sold by one company to their customers for a period.

Q: Define efficiency ratios

A: Efficiency Ratios : These ratios are employed to evaluate the efficiency with which the firm manages…