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Which is true when the earnings of a business are less than its production costs?
Wiki User
∙ 9y ago
It is making a loss which may not be sustainable. In that case, the business will go bust.
Wiki User
∙ 7y ago
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Is a company earnings are the same as its revenue?
A company's earnings are equal to revenue less costs of production over a given period of time.
What are the roles of a manager in a business?
through less to less cost production. satisfy to her staff or emploees.
Total costs less conversion costs equal to material costs?
Conversion cost is total of: Options Direct material and direct wages Direct material, direct wages, and production overheads Direct wages and production overheads. None of the above
What is an average cost of Algae production?
invest in Origin Oil (OOIL) and it costs less than a dollar
How do you explain fixed costs really being variable when the more you produce the less they become?
The basic point is that fixed costs, even though they stay the same, become less in relation to the increased production.
Why do production possibilties frontiers tend to curve because they show?
the increasing costs resulting in increasingly less output
Modern machinery did all EXCEPT which of the following Drove production costs up. Employed more people to create more products. Made manufacturing less expensive. Created a shortage of raw materials.?
It did NOT drive production costs up.
Production possibilities frontiers curve when they are charted on a graph because they show?
the increasing costs resulting in increasingly less output
Why the production possibilities frontier graph is in curve?
the increasing costs resulting in increasingly less outputIt means underutilization of resources.
What is the name given to excess profits that are reinvested back into a business?
The term that you are looking for is 'retained earnings'. These are excess profits that may or may not be reinvested back into a business. They are ususally based on a percent of net earnings that are not paid out as dividends. Retained earnings are also used to pay debt and are recorded on the balance sheet under Shareholders' Equity.Also referred to as 'retained surplus' or 'undistributed profits', retained earnings are derived by adding net income to or subtracting net losses from beginning retained earnings less dividends paid to shareholders.
Is retained earnings an asset?
No, retained earnings comes after Net Income on the Income Statement. The retained earnings is less than the Net Income if a dividend is paid out.
What kind of costs are associated with poor or ineffective business communications?
Poor or ineffective business communication can weaken decision making because of late, unreliable information; slow down problem solving by taking more time to understand problems and delaying time to create solutions; missing warnings of potential problems from rising business costs to critical safety issues; lower productivity, causing higher costs; weaker business relationships; less persuasive marketing messages; and less professional images for employers and companies.
