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2 years ago

Using a large value for order k in the moving averages method is effective in

Business

1 answer:

Masteriza [31]2 years ago

4 0

Answer:

The correct answer is A that is smoothing out the random fluctuations.

Explanation:

The higher values of K states the greater number of the values which need to be consider for forecasting.

When consider or taking the larger or the higher value of the irregular fluctuation which could be decreased or reduced.

And as a consequence, the large value of K will be used for smoothing of the random fluctuations.

Therefore, the right answer is smoothing of the random fluctuations.

You might be interested in

DeMont Tax Services provides primarily two lines of service: accounting and tax. Accounting-related services represent 60% of it

pogonyaev

Answer:

Accounting revenue = $7,500,000

Tax revenue = $5,000,000

Explanation:

Contribution margin is net of Sales price and variable cost per unit.

Break-even is the level of sales at which the business have no profit no loss. At this point business only covers the the variable and fixed cost.

Average contribution = (Revenue from Accounting x Contribution of accounting services ) + (Revenue from Tax x Contribution of Tax services )

Average contribution = (60% x 30%) + (40% x 40%) = 18% + 16% = 34%

Revenue at break-even = Fixed cost / Contribution margin ratio

Revenue at break-even = $4,250,000 / 34% = $12,500,000

Accounting revenue = $12,500,000 x 60% = 7,500,000

Tax revenue = $12,500,000 x 40% = 5,000,000

8 0

2 years ago

Marlin Corporation reported pretax book income of $1,020,000. During the current year, the net reserve for warranties increased

FromTheMoon [43]

Answer:

Marlin's current income tax expense is $238,140.

Explanation:

Using the US current corporate tax rate of 21%, Marlin's current income tax expense or benefit can be determined by taking into consideration the effects of other revenue and expenses items on the pretax income to obtain taxable income as as follows:

Particulars Amount ($)

Pretax book income 1,020,000

Increase in net reserve for warranties 29,000

Amount of depreciation exceeded 102,000

Dividends received deduction (17,000)

Taxable income 1,134,000

Tax expense (21% * $1,134,000)  (238,140) 

Income after tax 895,860

Therefore, Marlin's current income tax expense is $238,140.

Note:

Marlin's current income tax expense is obtained as follows:

Tax expense = Tax rate * Taxable income = 21% * $1,134,000 = $238,140.

5 0

2 years ago

Milner Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 3 box tops from Milner Frosted Rakes bo

ladessa [460]

Answer:

$87, 500.

Explanation:

1 Pottery cereal bowl = 3 box tops + $1

60% of the box tops will be redeemed. In 2007

Total sales = 675,000 boxes of Frosted Flakes

Estimated to be redeemed = 60% of 675,000 = 405,000 boxes

Already redeemed = 330,000 box tops

Outstanding = Estimated redemption - Already redeemed

Outstanding = 405,000 - 330,000 = 75,000 box tops

1 Pottery cereal bowl = 3 box tops

Outstanding cereal bowl = 75,000/3 = 25,000

Cost of cereal bowl = $2.50

Monetary compensation = $1

Outstanding premiums = 25,000 x ($2.50 + $1)

= 25,000 x $3.5

= $87,500

6 0

1 year ago

Read 2 more answers

Baker Company owns 15% of the common stock of Charlie Corporation and used the fair-value method to account for this investment.

solniwko [45]

Answer:

the income that recognized on this investment is $10,500

Explanation:

The computation of the income recognized on this investment for the year 2021 is shown below"

= dividend × share of ownership

while

The dividend is $70,000

And, the share of ownership is 15%

Now place these values to the above formula

= $70,000 × 15%

= $10,500

hence, the income that recognized on this investment is $10,500

3 0

2 years ago

As the owner of an art gallery with a keen eye for upcoming talent, you find a painting that you feel is sure to net a large pro

pickupchik [31]

Answer:

I would rather sign a contract with talent for a relatively short period say 5 months where I would pay $5000 per month or I would increase the amount paid for the painting to $10000 or $15000

Explanation:

A huge momentarily reward can blind long term gain and during this period.

8 0

2 years ago