Data Used in Business Analytics Need to Be Reliable and Valid

question 52

Essay

Data used in business analytics need to be reliable and valid. Explain.

Comprehend the concepts of bond premium and discount including their amortization.

Understand the nature of bonds as interest-bearing notes and their contractual aspects.

Grasp the relationship between bondholders and the issuing corporation, including the hierarchy of claims.

Understand the methods for amortizing bond discounts and premiums, including the straight-line and effective interest rate methods.

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Definitions:

Fixed Costs

Costs that do not change with the level of goods or services produced within a certain scale.

Product

Any item or service that is created through a process and is intended to be supplied to a market to satisfy a want or need.

Fixed Costs

Expenses that do not change in total despite fluctuations in the volume of goods or services produced.

Sunk Costs

Costs that have already been incurred and cannot be recovered or changed, which should not influence future business decisions.