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2 years ago

Which two of the four cs of credit have to do with earning potential and available cash?

Business

1 answer:

Natali5045456 [20]2 years ago

7 0

The four 'Cs' of credit are : Character, Capacity or Cashflow, Capital and Conditions.

Out of the 4 'Cs' of credit, the two 'Cs' that deal with the earning potential and available cash are 'Capacity' and 'Capital'.

Capacity: It is the assessment the of the ability of any business to pay bills and maintain the cash flow. It contains in it the debt structure of the firm and the unused credit.

Capital: It is the assessment, if a company has the ability to pay back its creditors by the help of its financial resources or available cash.

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Mel’s Meals 2 Go purchases cookies that it includes in the 10,000 box lunches it prepares and sells annually. Mel’s kitchen and

Irina18 [472]

Answer:

Current Operation (purchase of cookies) - $0.60

Alternative - $0.2 materials

$0.15 direct labor

$0.45 without increasing capacity of which $0.3 is fixed - meaning it would still be incurred at current capacity

<u> Mel's Meals Evaluation of Alternatives</u>

Purchase Produce

$ $

Cost to Buy 0.6 -

Materials - 0.2

Direct Labor - 0.15

Overhead (Variable) - 0.15

Total Cost 0.6 0.5

Decision: Mel should not continue buying them as she would be saving $0.1 for every lunch meal.

Since there would not be an increase in the total fixed overhead if Mel's makes the cookies in-house, then the $0.3 fixed overhead is not significant in calculating the cost of producing.

Explanation:

The differential cost in this instance is $0.1 as Mel's saves that for every cookie made which multiplied by the number included in the box and by the total box prepared and sold gives = 0.1 * 2 * 10000 = $2,000 saved for making

5 0

2 years ago

Read 2 more answers

Measures defined by management and used to internally evaluate the success of a firm's financial, business process, customer,

ladessa [460]

Complete Question:

Measures defined by management and used to internally evaluate the success of a firm's financial, business process, customer, and learning and growth are called

A. parameters.

B. the balanced scorecard method.

C. BPM.

D. KPIs.

E. benchmarks.

Answer:

D. KPIs.

Explanation:

Measures defined by management and used to internally evaluate the success of a firm's financial, business process, customer, and learning and growth are called KPIs.

KPIs is simply an acronym for key performance indicators.

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2 years ago

Based on beck's account, what were some of the hardships that prisoners faced on the bataan death march? check all of the boxes

nydimaria [60]

Being forced to stand in the hot sunenduring beatingscatching diseases<span>getting shot</span>

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2 years ago

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An industrial plant needs to make 100,000 parts per month to meet demand. Each month contains 20 working days, each of which all

Ratling [72]

Answer:

Part A:

Workers Needed=20.833≅21

Part B:

Productivity of individual worker=2.0833 parts/hour

Part C:

Multifactor productivity=0.0832 Parts/$

Explanation:

Part A:

Total parts =100,000

Workers needed= Total parts/(Parts per hour* hours per shift*Total Shifts)

$Worker\ needed=\frac{100000}{10\ Parts/hour*8\ hours/shift*60\ shifts/worker} \\Workers\ needed= 20.833$

Workers needed=20.833≅21

Part B:

Productivity of individual worker:

$Productivity\ of\ individual\ worker=\frac{100000}{100\ workers*8\ hours/shift*60\ shifts/worker} \\Productivity\ of\ individual\ worker=2.0833\ parts/hour$

Part C:

Total cost of material= $10*100,000=$1,000,000

Capital Costl= $100,000

Total labor Cost= $21\ workers*8\ hours/shift*60\ shifts/worker*\$10/hour$

Total labor Cost=$100,800

Multifactor productivity=Total Parts/(Total cost of material+capital cost+Total labor Cost)

$Multifactor\ productivity=\frac{100000}{\$1,000,000+\$100,000+\$100,800} \\ Multifactor\ productivity=0.08324\ Parts/\$$

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2 years ago

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Arturiano [62]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.

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2 years ago