Polaris and Arctic Cat are competitors in the sales of recreational and off-road vehicles. Compare these companies'
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1. Which company has a higher ratio of costs, defined as cost of goods sold plus total operating expenses, to revenues? Use the two most recent years' income statements from Appendix A. Show your analysis.
2. How might the use of activity-based costing help the less competitive company become more competitive?
3. Polaris sells its vehicles directly to dealers. Assume a dealer is considering opening a new retail store. What are the activities associated with opening a new retail store?
Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...
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Financial and Managerial Accounting Information for Decisions
ISBN: 978-1259347641
5th edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
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