Marketing variable costs not increase total variable costs

Assignment Help Financial Management
Reference no: EM13920016

Why do higher marketing variable costs not increase total variable costs on the income statement? Select One Save Answer A. Marketing costs are considered period costs on the income statement

B. Promotion and Sales budget have a small effect on variable costs

C. Marketing forecasts are not related to the preformed income statement

D. None of the above

Reference no: EM13920016

Questions Cloud

Use the mirr decision rule to evaluate this project : Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 12 percent, and that the maximum allowable payback and discounted payback statistics for your ..
Determine the balance in the retained earnings account : Determine the balance in the Retained Earnings account as of January 31, 2013.
Securitization combined with borrowing-irrational exuberance : Assume that securitization combined with borrowing and irrational exuberance in Hyperville have driven up the value of existing financial securities at a geometric rate, specifically from $6 to $12 to $24 to $48 to $96 to $192 over a six-year time pe..
Straight-line basis toward a zero salvage value : Roten Manufacturing Company is considering an investment on a machine for producing auto parts. The machine costs $250,000 today, will have a five-year life and will be depreciated over a five-year life on a straight-line basis toward a zero salvage ..
Marketing variable costs not increase total variable costs : Why do higher marketing variable costs not increase total variable costs on the income statement? Select One Save Answer A. Marketing costs are considered period costs on the income statement
What is the projects operating cash flow for the first year : Cairn Communications is trying to estimate the first-year operating cash flow (at t = 1) for a proposed project. The financial staff has collected the following information: Projected sales $10 million; Operating costs. What is the project’s operatin..
Determine the amount of retained earnings as of december : Explain the difference between common stock and retained earnings.
What dividend did the stock pay : A financial adviser claims that a particular stock earned a total return of 10% last year. During the year the stock price rose from $30 to $32.50. What dividend did the stock pay?

Reviews

Write a Review

Financial Management Questions & Answers

  What will be the new portfolio beta

You have a portfolio with a beta of 1.59. What will be the new portfolio beta if you keep 86 percent of your money in the old portfolio and 14 percent in a stock with a beta of 0.58? (Do not round intermediate calculations and round your answer to 2 ..

  What is the profitability index if the discount rate

The Company X. is currently considering a project that will produce cash inflows of $12,000 a year for three years followed by $6,500 in year four. The cost of the project is $38,000. What is the profitability index if the discount rate is 7 percent?

  Winning contractor is qualified and capable of doing work

Discuss whether the cost analysis or price analysis should be a key factor to determine whether the winning contractor is qualified and capable of doing the work. Provide and actual or theoretical example.

  What is expected rate of return on this stock

You recently purchased a stock that is expected to earn 19 percent in a booming economy, 14 percent in a normal economy, and lose 3 percent in a recessionary economy. There is a 21 percent probability of a boom, a 70 percent chance of a normal econom..

  Financial stability of ecosystems

What are your thoughts as to the financial stability of EcoSystems and what positive aspects of the financial statements and ratios strike you and what "red flags" of concern have drawn your attention

  Working capital and current assets

Boeing Aircraft LLP, a manufacturer of rubber-band powered drones, forecasts total fund requirements for the next calendar year as follows: What is the permanent component of the monthly funds requirement, and its monthly average. What is the seasona..

  What is their current ratio

Food Products, Inc. has cash of $2 million, short-term investments of $3 million, accounts receivable of $4 million, inventory of $5 million and plant, property, and equipment of $ $6 million. It’s current liabilities = $10 million and it’s total lia..

  Conch republic electronics-profitability index of project

Conch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president is Shelly Couts, who inherited the company. The company originally repaired radios and other household appliances when it was founde..

  Pay for the lockbox system

Hardin-Gehr Corporation (HGC) began operations 5 years ago as a small firm serving customers in the Detroit area. However, its reputation and market area grew quickly. If HGC has an opportunity cost of 10%, how much is the lockbox system worth on an ..

  About the effective rate of interest

Find the interest rate (or rates of return) for each of the following situations. Round your answers to two decimal places. You borrow $700 and promise to pay back $749 at the end of 1 year. You lend $700 and receive a promise to be paid $749 at the ..

  The payments are made monthly

You take out a 4 year car loan for $18,000. The loan has a 4% annual interest rate. The payments are made monthly. What are the monthly payments?

  What is counts unlevered beta

Counts Accounting has a beta of 1.20. The tax rate is 40%, and Counts is financed with 45% debt. What is Counts' unlevered beta? Round your answer to two decimal places.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd