What are the disadvantages of cutting expenses and costs , when it comes to working capital and operating cycle?
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What are the disadvantages of cutting expenses and costs , when it comes to
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- Which of the following is a disadvantage of outsourcing? A. freeing up capacity B. freeing up capital C. transferring production and technology risks D. limiting ability to upsize or downsize productionWhy do firms not have sunk costs over time? How should managers approach sunk costs when deciding whether to enter a market or remain in it?Why do companies allocate costs? What are some of the advantages and disadvantages to doing so?
- Discuss the following components of break-even analysis: fixed costs, variable and semi-variable costs, and contribution margin. How does cash flows versus accounting flows affect break-even?What concept relates to the proportionate savings in costs gained when levels of production are increased: A) Accounting profit. B) Economies of scale. C) Marginal costs. D) Barriers to entry. E) Economic profit. The benefit lost when choosing one option precludes receiving the benefits from an alternative option was referred to as: A) Irrelevant costs. B) Lost costs. C) Alternative costs. D) Opportunity costs. E) Sunk costs.What is the major shortcoming of using operating income as a performance measure for investment centers?
- What is mining? Explain why the real cost of goldis more than what most people pay for it. What aresome examples of costs not accounted for?How will relating product contribution margins to the amount of the constrained resource theyconsume help a company maximize its profits?How does the cost system affect the financial position of the firm?
- What is the major shortcoming of using income from operations as a performance measure for investment centers?Why is there a need for reducing accruing expenses?Managers have some flexibility in setting the estimated useful lives of depreciable assets. Explain how this could allow managers to manipulate earnings. Would depreciation be considered a variable cost or a fixed cost? Explain how a change in sales price, variable cost, or fixed cost affects breakeven in units and breakeven in sales.