BuboFlash - helps with learning

Do you want BuboFlash to help you learning these things? Or do you want to add or correct something? Click here to log in or create user.

Presentation
Question

Answer

Tags

#cfa #cfa-level-1 #economics #reading-15-demand-and-supply-analysis-the-firm #section-3-analysis-of-revenue-costs-and-profit

Question

If a firm can cover its variable costs but not all of the total costs, the firm should attempt to operate by [...] to buy time to return operations back to profitability.

Answer

negotiating special arrangements with creditors

If you want to change selection, open document below and click on "Move attachment"

Shutdown Analysis
For the most recent financial reporting period, a business domiciled in Ecuador (which recognizes the US dollar as an official currency) has revenue of $2 million and total costs of $2.5 million, which are or can be broken down into total fixed cost of $1 million and total variable cost of $1.5 million. The net loss on the firm’s income statement is reported as $500,000 (ignoring tax implications). In prior periods, the firm had reported profits on its operations. What decision should the firm make regarding operations over the short term? What decision should the firm make regarding operations over the long term? Assume the same business scenario except that revenue is now $1.3 million, wh

Summary

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Details

No repetitions

Discussion

Do you want to join discussion? Click here to log in or create user.