Why us corporations build manufacturing plants abroad
Why do U.S. corporations build manufacturing plants abroad when they can build them at home?
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Why are accruals called spontaneous sources of funds, what are their costs, and why don't firms use more of them?
Assume that 30,000 shirts are estimated to be sold next year. Construct a direct costing (contribution) format income statement for next year.
Lybrand also incurs selling and administrative costs of $75,000 fixed costs plus $2 per pair for sales commissions. The company has plenty of excess manufacturing capacity to use in making the sunglasses.
Why do you think it is easier for firms with weak credit positions to obtain lease financing than bank loan financing?
A company makes power tools. The Motor Division makes a motor that Small Tools Division needs for a new product. The Motor division's variable cost of manufacturing the component is $6 per unit.
Identify each of the following responsibility centers as a cost center, a revenue center, a profit center, or an investment center:
Why EBIT is generally considered to be independent of financial leverage? Why might EBIT actually be influenced by financial leverage at high debt levels?
When the budget was almost complete, Dunn asked the financial assistant to increase amounts budgeted for labor and supplies 15%.
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