BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -If a company plans to differentiate its products by offering low prices and discounts for items packaged in bulk (like a discount retailer that requires memberships for its customers), which component in the ROA profit driver analysis is the company attempting to boost? Net profit margin.

Detailed explanation-2: -A business’s contribution margin-also called the gross margin-is the money left over from sales after paying all variable expenses associated with producing a product.

Detailed explanation-3: -Which of the following best describes the proper presentation of accounts receivable in the financial statements? Accounts receivable less the Allowance for Doubtful Accounts in the asset section of the balance sheet.

Detailed explanation-4: -Net sales is the result of gross revenue minus applicable sales returns, allowances, and discounts. Costs associated with net sales will affect a company’s gross profit and gross profit margin but net sales does not include cost of goods sold which is usually a primary driver of gross profit margins.

Detailed explanation-5: -Bad debt expense is the way businesses account for a receivable account that will not be paid. Bad debt arises when a customer either cannot pay because of financial difficulties or chooses not to pay due to a disagreement over the product or service they were sold.