Find the coverage ratio and profitability ratio

Q: What is Unit-Profit or Unit-Cost Calculation?

A: Cost:   It is the economic value of resources incurred by a firm to manufacture a product or render…

Q: The following information pertains to Vladamir, Inc., for last year: Beginning inventory, units…

A: The question is based on the concept of Cost Accounting.

Q: why it is important to use profitability ratios

A: Ratio analysis is an evaluation tool used by the businesses with a view to obtain knowledge about…

Q: List the most important assumptions of cost-volume-profit analysis.

A: Cost Volume Profit Analysis (CVP Analysis): This analysis is helpful in determining that how any…

Q: What information is needed to measure the absolute profitability of a segment?

A: Absolute profitability measures are defined as the measure, which used to impact an overall profits…

Q: Define the term Markel/book ratio?

A: Different financial valuations metrics will be used to evaluate and to understand the company’s…

Q: Describe following:* Market approach* Income approach* Cost approach

A: Market Approach:   Market approach is a method used to assess the value of an asset depending on the…

Q: What is the difference between Cost-Volume Profit graph and Profit-Volume graph?

A: Introduction:- Cost-Volume Profit graph displays the relationship between the cost of units…

Q: For a recent year, McDonald's (MCD) company-owned réstaurants had the following sales and expenses…

A: Contribution Margin = Sales - Variable Cost

Q: What is the relationship between profitability and efficiency, liquidity, investment, and efficiency…

A: (1) Financial Ratios will express financial Quantity concerning another financial ratio. (2) These…

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: Rs. Rs. Sales 428,000 Purchases 304,400 Wages and salaries 64,000 Rent 14,000 Heating and lighting…

A: Net Profit is Profit/Income left after Deducting all Business Expense from Total Revenue.

Q: Revenue: Product Service Total revenue Cost of revenue: Product Service Total cost of revenue.…

A: Gross profit margin is the ratio which is used to determine the percentage of gross profit with…

Q: Explain gaining ratio

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

Q: Assume you have a student loan that you will pay off in 10 years. How much will you save in interest…

A: Interest refers to the amount charged by the lender on the lent amount. The borrower of the loan is…

Q: Define efficiency ratios

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

Q: On December 31, 2016, CLOUDY was depressed upon seeing the following accounts in his ledger. In…

A: Cost of goods sold also known as cost of sales is the cost of the inventory which have been sold…

Q: Balance Sheet ($ in Millions) Income Statement ($ in Millions) Liabilities and Owners' Equity Assets…

A: Financial ratios or accounting ratios are those ratios which compare the line items of balance sheet…

Q: Define and give examples of the following terms: cost center, revenue center, profit center, and…

A: Responsibility center: It refers to that unit of the organization for which a separate executive is…

Q: Examples of how cost–volume–profit analysis can be used for decision-making.

A: Solution:Cost volume profit analysis represents the impact of change in cost to operating profit. it…

Q: Define basic earning power (BEP) ratio

A: The formula to compute basis earning power ratio as follows:

Q: Explain profitability index

A: Profitability index is a financial tool which tells us whether an investment should be accepted or…

Q: Define target payout ratio

A: SOLUTION:- A target payout ratio is a degree of the proportion of a company's profits it would want…

Q: What is the ROE and operating Margin?

A: ROE = Net Income/Shareholders equity In the given case, Shareholders equity is 60 % of the vehicle…

Q: What is meant by internal benchmarking in ratio analysis

A: Internal benchmarking is a process in which a company or an organisation looks within its own…

Q: Explain profitability ratios

A: SOLUTION:- A profitability ratio is a measure of profitability, which is a way to measure a…

Q: Accounts Payable Salary Payable Current Liabilities Long Term Debt Total Liabilities Common Stock…

A: In this question, we need to prepare common size balance sheet for the liabilities and equity…

Q: Merits and demerits of the cost value profit analysis CVP

A: Lets understand the basics. Cost volume profit analysis (CVP) is as name suggest analysis of total…

Q: Explain retention ratio

A: Retention Ratio represents the percentage of profits retained by a Company. The Retention ratio…

Q: The following information is available from the most recent financial statements of the Attaché…

A: Debt to asset ratio = Total liabilities/Total assets x 100

Q: VII. Direction: Compute and interpret. The following comparative financial statements are provided…

A: The question is related to Ratio Analysis. Efficiency or performance or turnover ratio are…

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.