Financial Calculations

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Hedging techniques are strategies and tactics employed by investors to reduce financial risk. Pairing, short-against-the box, exchange-traded funds, futures and options are the most commonly used to predict and reduce financial risk.

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  • What are the remedies to measure and control inflation?

    Q: What are the remedies to measure and control inflation?

    A: The rate of inflation is a measure of the Consumer Price Index, according to Saint Joseph’s College. Inflation control is a part of the monetary policy set by the Federal Reserve that involves the fluctuation of interest rates and the selling of bonds through the U.S. Treasury.
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  • What are hedging techniques?

    Q: What are hedging techniques?

    A: Hedging techniques are strategies and tactics employed by investors to reduce financial risk. Pairing, short-against-the box, exchange-traded funds, futures and options are the most commonly used to predict and reduce financial risk.
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  • How can one live cheaply?

    Q: How can one live cheaply?

    A: There are many ways to live cheaply. Before you spend any money, ask yourself if you really need the thing you are considering purchasing. Before shopping, write down all the items you really need and stick to the list. Doing so will help you save a lot of money and live much more frugally,
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  • What is the formula for total fixed cost?

    Q: What is the formula for total fixed cost?

    A: The formula for total fixed cost is fixed costs plus variable costs multiplied by quantity equals total cost, or FC +VC(Q)=TC, according to Education Portal. Fixed costs are costs that do not change based on aspects such as production levels, where variable costs change based on production.
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  • What does "net cost" mean?

    Q: What does "net cost" mean?

    A: The net cost of a good or service is the total cost of the product minus any benefits gained by purchasing that product, according to AccountingTools. It differs from the gross cost, which is just the total cost of a product.
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  • What is a profit sharing plan?

    Q: What is a profit sharing plan?

    A: A profit sharing plan gives employees a percentage of the profits the company earns each year. These funds are put into an investment account for the employees.
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  • How do you calculate late fees?

    Q: How do you calculate late fees?

    A: The Bureau of the Fiscal Service, a division of the U.S. Department of the Treasury, provides a monthly compounding interest calculator. This online calculator allows people to automatically determine the amount of monthly compounding interest owed on payments made after the payment due date.
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  • How do you calculate food cost percentage?

    Q: How do you calculate food cost percentage?

    A: StarChefs explains that food cost percentage is figured by taking the total beginning inventory cost plus purchases minus the ending inventory costs; then dividing that number by food sales.
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  • What items make up the cost of goods sold?

    Q: What items make up the cost of goods sold?

    A: The items that make up the cost of goods sold are the materials, equipment and labor that go into creating the goods. Many marginal cost items affect the actual cost of producing and selling items.
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  • How much do teens spend on clothes per year?

    Q: How much do teens spend on clothes per year?

    A: According to Statistic Brain, as of 2014, total spending by American youths aged 13 to 19 years is approximately $258.7 billion annually. According to Business Insider, teens spend 40 percent of their money on clothing. If that's correct, it translates to $103.48 billion spent by teens annually for clothes.
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  • What is a marginal revenue function?

    Q: What is a marginal revenue function?

    A: The marginal revenue function in economics refers to the increase in revenue resulting from the sale of one additional unit of output. Marginal revenue is calculated by dividing the change in revenue by the change in output. While the marginal revenue function can remain constant over a specific level of output, it follows the law of diminishing returns. As a result, marginal revenue tapers off as output increases.
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  • What is the currency of Brazil called?

    Q: What is the currency of Brazil called?

    A: The currency of Brazil is called the Real, according to the XE website. The Real's currency code is BRL and its symbol is R$. The minor unit of the Real is the Centavo, which amounts to 1/100 R$.
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  • What does "net price" mean?

    Q: What does "net price" mean?

    A: The term "net price" refers to the cost of something minus the price of anything that lowers the total dollar value a consumer actually pays, according to U.S. News & World Report. The term is most commonly used by colleges and universities.
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  • What is a petty cash transaction?

    Q: What is a petty cash transaction?

    A: Petty cash transactions are small business expenses that are paid out in cash, according to About.com. Frequently a company has a small amount of cash on hand that is used to pay for small purchases or reimburse employees for company purchases made out of pocket. Petty cash expenditures are recorded in the company's financial records to keep track of how the money is utilized.
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  • What is the importance of international finance?

    Q: What is the importance of international finance?

    A: International finance is important for determining exchange rates, comparing inflation rates, investing in foreign debt securities, ascertaining economic conditions in other countries and investing in foreign markets, according to For Dummies. The International Financial Reporting Standards (IFRS), adopted by more than 120 countries as of April 2011, are an important backbone of international finance and offer numerous benefits, according to Investopedia.
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  • What does a financial analyst do?

    Q: What does a financial analyst do?

    A: Investopedia explains that a financial analyst gathers data and analyzes the financial foundation of a business or industry. The daily tasks of a financial analyst depend on his level of experience. Most junior analysts are responsible for gathering data, while senior analysts are responsible for making connections in the industry. Junior analysts are promoted to senior analysts after a minimum of three years in the industry.
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  • How much does it cost to buy a star?

    Q: How much does it cost to buy a star?

    A: The cost to buy a star ranges from $19.95 to $50 and higher, depending on the specific package chosen. Certain star packages include medallions while others include a commemorative plaque. It is also possible to name the star specifically for a particular person.
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  • How do you calculate per capita income?

    Q: How do you calculate per capita income?

    A: The U.S. Census Bureau calculates per capita income by dividing a geographic area's total income from the past 12 months by the total population of all ages living in that geographic area. Only income received by people over 15 years old is counted, notes the U.S. Department of Commerce.
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  • Is inventory a current asset?

    Q: Is inventory a current asset?

    A: The U.S. Division of Trading and Markets defines current assets as the resources that are reasonably expected to be sold for cash or other receivables within one calendar year. If the inventory for a business falls under this category, then that inventory could be considered a current asset. Morningstar lists inventories among other common line items in the category of current assets, which also include accounts receivable, short-term investments and cash or cash equivalents.
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  • What is the indirect method for preparing a cash flow statement?

    Q: What is the indirect method for preparing a cash flow statement?

    A: The indirect method for preparing a cash flow statement is used to show the uses and sources of cash by a business. It is the preferred method by most companies because the information required to prepare it is fairly easy to assemble from accounts that a company usually maintains. However, the indirect method does not clearly show how cash flows through a business, which is shown in the direct method.
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  • What is the difference between compound and simple interest?

    Q: What is the difference between compound and simple interest?

    A: The difference between simple interest and compound interest is that simple interest builds only on the principal amount, while compound interest builds on both the principal and previously earned interest. Because of this, compound interest always yields greater profits.
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