SHORT QUESTIONS. PLEASE ANSWER ALL OF THEM (IN 3 TO 4LINES EACH) to get positive rating.
What is the importance of understanding the general economicenvironment and the industry situations in financial statementsanalysis?
Distinguish between horizontal and vertical analysis offinancial statement data.
What is the importance of using industry or competitor data infinancial statement analysis?
If net sales have been increasing at a reasonable rate, but netincome has been declining steadily as a percentage of these sales,what appears to be the problem?
What is cost-volume-profit analysis? What are the assumptionsand limitations of cost volume profit analysis? How can thebreakeven and cost-volume-profit analysis help the companyâsmanagement in carrying out its function?
Explain the significance of the margin of safety?
How is the high-low method used in segregating the fixed andvariable components of mixed costs?
How will the breakeven point for multiple product line becomputed?
What is a composite contribution margin?
SHORT QUESTIONS. PLEASE ANSWER ALL OF THEM (IN 3 TO 4LINES EACH) to get positive rating.
What is the importance of understanding the general economicenvironment and the industry situations in financial statementsanalysis?
Distinguish between horizontal and vertical analysis offinancial statement data.
What is the importance of using industry or competitor data infinancial statement analysis?
If net sales have been increasing at a reasonable rate, but netincome has been declining steadily as a percentage of these sales,what appears to be the problem?
What is cost-volume-profit analysis? What are the assumptionsand limitations of cost volume profit analysis? How can thebreakeven and cost-volume-profit analysis help the companyâsmanagement in carrying out its function?
Explain the significance of the margin of safety?
How is the high-low method used in segregating the fixed andvariable components of mixed costs?
How will the breakeven point for multiple product line becomputed?
What is a composite contribution margin?
