Explain the difference between operating gearing and financial gearing. Identify one likely implication to a company with a high level of gearing.
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- Explain the difference between operating gearing and financial gearing. Identify one likely implication to a company with a high level of gearing.
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- Define operating leverage and explain its importance to a company and how it relates to risk.An analyst who is interested in assessing a company’s fi nancial position is most likely to focus on which fi nancial statement? B . Income statement.What are the Cost Product Cost and External Financial reporting?
- What is the meaning of contribution margin ratio? How is this ratio useful in planning businessoperations?In performing CVP analysis for a manufacturing company, what simplifying assumption is usually made about the volume of production and the volume of sales?Explain how does the earning forecast is effective in assessing company performance?
- what are the advantages of calculating a supplier performance index?Classify the following activities as per value chain analysis: 1.Communication, pricing and channel management 2.Installation, repairs & replacement 3.Planning and management 4.Infrastruacture of the companyWhich of the following is NOT an example of a metric that companies are likely to use to measure some aspect of performance? a. Operating income b. CEO salary c. Cash flows d. Average employee tenure
- Evaluate the benefits and the limits of financial ratio analysis. What other type(s) of analysis should accompany financial ratio analysis in order to assess more accurately the performance and the strategy of a company?what is the best design for costing systems? a. to be tailored to the underlying operations of the company. b. in accordance with generally accepted accounting principles for financial accounting reporting. c. to be compatible with the latest technology for data collection regardless of the cost. d. according to guidelines established by the institute of management accountants for aiding management decision making.Which of the following is the principle reason for preparing managerial accounting reports? a.clarity b.usefulness to management c.GAAP d.cost of preparation
