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Should a firm continue to operate even when total revenue is not covering total cost?
Yes, if the firm is able to cover fixed costs and a portion of variable costs it should continue to operate. If it is not operating, it will still have its fixed costs but will not be able to cover it. So even if a firm is making losses, it is making less of a loss than if it were to temporarily shut down.
What else can I help you with?
What percentage of revenue should office rent be?
Nada!
Should a multinational corporation operate as a tightly integrated worldwide business or would it be more effective to let each national subsidary operate autonomously?
We have the same question dmu student.where are you??
Where should HP concentrate globally to continue its recent good fortune?
lund pe...............
How can I maximize my revenue credit through contributions to my 401k account?
To maximize your revenue credit through contributions to your 401k account, you should consider contributing the maximum amount allowed by the IRS, take advantage of any employer matching contributions, and regularly review and adjust your investment choices to optimize growth potential.
Why should shareholders wealth maximization be the primary objective of firm?
"Shareholder value" is simply a buzzword that has no real backing in science or finance. The increase in shareholder value is simply a consequence of good management in the following areas: 1) Operating margins 2) Tax rate 3) Revenue 4) Research and development 5) Comparative advantage 6) Risk management And so on. To ask why a manager should increase shareholder value is akin to asking why companies should invest in R&D or why they should maximize revenue. And the answer is simply that managers are rational beings and more is always better.
Why should a firm continue to operate under a short-run period when TR is greater than VC but less than TC?
The firm should continue to operate whenMarginal Revenue (MR) >= Variable Cost (VC = MC)Because it is still making a structural profit per unit, which indicates an economic profit is being made. When making optimal production decisions, one should not include sunk costs, including plant investment, which cause TC >= VC. While the firm will be operating at a loss, it is still achieving a positive cost-benefit outcome.
The revenue recognition principle dictates that revenue should be recognized in the accounting records?
The revenue recognition principle dictates that revenue should be recognized in the accounting records when it is earned.
When should you discard your oven?
Seriously, you discard an oven when it breaks, which implies as well that it is unsafe to use. If it works and is safe to operate it, you can continue using it, regardless of how old it is.
Example of total variable cost as a percentage of sales revenue?
Total variable cost as a percentage of sales revenue can vary depending on the industry and specific business model. However, a generally accepted guideline is that variable costs should ideally be kept below 70-80% of sales revenue. This ensures that there is enough margin left for covering fixed costs and generating a profit.
Why does the government warn people about smoking if they continue to sell it?
because of the amount of tax that has been put on it, its able to gain the government a lot of revenue. also the majority of the public feel they should have a right to smoke
Should the genetic engineering in agriculture should stop or continue?
continue
A revenue variance is unfavorable if the actual revenue is less than what the revenue should have been for the actual level of activity for the period true or false?
TRUE
Do you capitalize Internal Revenue Service?
Yes, "Internal Revenue Service" should be capitalized as it is a proper noun.
Does a revenue account normally have a debit balance?
No. A revenue account should always show a credit balance.
Should you continue HCG if you get your period?
should I continue on the HCG diet if i get my period?
State A machinery that should be allowed to operate to a critical speed?
State A machinery that should be allowed to operate to a critical speed?
Revenue accounts should begin each accounting period with zero balances?
should revenue accounts begin each accounting period with zero balance
