business 4970

Home Area eats first-inventory is transferred to other areas from the home area  Low Cost: Unit cost, market share measured by revenues,  high cost: net income  financial leverage: debt financing  lower ownership equity the higher: financial leverage  don't just borrow money and put it in your cash account; must do something productive with the funds e.g. build ne plant;  basic financial statments  income statment  cash flow statment  balance sheet  pandau uses rupees 6 rupees to 1 dollar; exchange rate can change  net sales to affiliate +20% line sales of inventory  good available for sale  consolidated sales numbers: sales to affiliates are not in it  only care about the outside transactions: consolidated financial statments  consolidated cost of goods sold: ignore affiliates  intra company sales- home area sales total  depreciation is measured through the straight line method ...

The capacity of an existing plat can be increased by adding more space. Each addition will provide extra space. Each addition will provide extra space for housing one more production line False When building a new plant construction costs can be paid to the contractor in 3 equal quarterly installments over the construction period False It will cost twice as much for a company to deactivate a first-shift production line than to reactivate it True While deactivating production lines will hurt the morale and productivity of the remaining employees, temporary idling of production lines will not have similar effects False The demand for products of higher quality trends to be more price elastic than for those of lower quality False The demand for products of higher quality tends to be more price elastic than for those of lower quality False   Higher quality products generally require less marketing effort than low quality products False Company policy limit...