How to correctly find the operating profit? Show an example please.

Q: What is the Economic Value Added (EVA) method? Provide a definition, state a formula, and define all…

A: Economic Value Added (EVA): EVA also called economic profit is a measure of the financial…

Q: Discuss the merits and demerits of the cost volume profit analysis (CVP)

A: Cost volume profit analysis is one of the important concept used in cost accounting. Under this…

Q: Shane Wildhorse began a business, Wildhorse Company, on January 1, 2021, with an investment of…

A: Accounting equation is the one which is used for business transaction analysis. The accounting…

Q: How would you define profit planning? What is the importance of profit planning?

A: a) Profit planning is a progression of steps being taken to arrive at an ideal level of profit. Such…

Q: Describe analyzing of profit using contribution margin.

A: The contribution margin ratio is the percentage of difference in a company's sales and variable…

Q: How to calculate profitability analysis?

A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…

Q: explain what is Net profit margin with a comprehensive example

A: The objective of this question is to understand the concept of Net Profit Margin, a key…

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: Define the term profit oriented.

A: Profit Oriented Company: Profit oriented company are refer as the company which main aim is to earn…

Q: can you now calculate the gross profit ?

A: Gross profit can be defined as the net sales revenue earned by business over a particular period of…

Q: Briefly explain the concept of economic, profitmaximizing pricing. It may be helpful to use graphs…

A: Pricing decisions: Pricing decisions is one of the most important and required decision for the…

Q: laxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVS), the Conquistador…

A: Profitability analysis can be referred to as the evaluation and analysis of the profitability of the…

Q: Discuss cost-benefit analysis and financial analysis tools

A: Answer: Cost-benefit analysis: It is nothing but a process of decision making that balances the…

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: Debit (RM) Credit (RM) 48,400 Particulars Capital Drawings Trade receivables Trade payables Sales…

A: Gross profit is calculated on basis of sales and cost of good sold and other direct expenses. Net…

Q: Describe the approaches of target profit.

A: Target Profit: It refers to the desired amount of profit that a company expects to achieve by the…

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: Flying Tomato sells a snowboard, WhiteOut, that is popular with snowboard enthusiasts. Presented…

A: Gross profit is the amount a company earns after subtracting the direct costs of producing or…

Q: Define the term Profit margins?

A: Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities,…

Q: Answer using the pictures 1) Evaluate the profit performance

A: Profitability is one of the important evaluation criteria being used in business. Business having…

Q: How do you calculate Benefit Cost Ratio (BCR). Mention the decision making process of BCR

A: The present value of the benefit is divided by the cost and investment in order to calculate the…

Q: Build an influence diagram that illustrates how to calculate profit.

A: Profit : Every business motive is to earn profit.  Profit is generally earned when the business…

Q: Define the term ‘profit–volume ratio’ and explain how it can be used for cost–volume–profit…

A: Profit-Volume Ratio: The profit-volume ratio (P/V ratio) is a measure that expresses the…

Q: Distinguish between a profit center and an investment center. Draw a diagram illustrating the…

A:

Q: Explain the term Divisible Profit.

A: Common stock: Common stock is the instrument used by the company for raising funds from the general…

Q: Describe the common profitability measures.

A: Common profitability measures include profitability ratios such as ROE, ROA, profit margin etc They…

Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.