which of the following are examples of erosion finance course hero

What is erosion cost in Finance?

Price erosion occurs when you are forced to lower your price—and thereby, the perceived value of your product—to compete with unauthorized sellers or sellers who have violated your pricing policy.

What is erosion in cash flow?

What is Erosion? Erosion is broadly defined as any negative impact that is directed towards an organization's sales, profits, or assets. It is a risk factor that must be taken into consideration, especially when considering the company lifecycle or the economic market cycle.

Which of the following are examples of an incremental cash flow?

Examples of incremental cash flow includes increase in accounts payable, decrease in net working capital, increase in taxes, and decrease in cost of goods sold.

What are the forms of erosion?

Rainfall produces four types of soil erosion: splash erosion, sheet erosion, rill erosion, and gully erosion.

What is capital erosion meaning?

decrease in the actual worth of business equity as a consequence of an increase of market prices.

Which of the following is an example of an incremental cash flow associated with an expansion project?

Which of the following is an example of an incremental cash flow associated with an expansion project? Shipping and installation costs for the new asset. Which of the following is not one of the techniques that is mentioned in the book that can be used to incorporate risk in capital budgeting analysis?

What is an incremental cash flow quizlet?

Incremental cash flow from operations is the cash flow from a project that is expected to be generated after all operating expenses and taxes have been paid.

Which of the following would not be counted as part of incremental cash flow?

Which of the following would not be counted as part of incremental cash flow? - Sunk cost is historical and will not change irrespective of whether the project goes ahead or not. Therefore it should not count as part of the project's incremental cost.

What is value erosion?

Value erosion refers to loss of value relative to the amount previously captured by a firm. Value erosion occurs due to changes in customer preferences, technology, regulations, competitor activity, and economic conditions.

How do you calculate erosion price?

Price Erosion Formula The mark up percentage (M) is the profit (P) divided by the cost (C) to make the final product: M = P / C = (R - C)/ C.

What does impact erosion mean?

The impacts of erosion on cropping lands include: reduced ability of the soil to store water and nutrients. exposure of subsoil, which often has poor physical and chemical properties. higher rates of runoff, shedding water and nutrients otherwise used for crop growth. loss of newly planted crops.

How do you calculate erosion cost?

The equation is A = R x K x L x S x C x P and multiplies various factors to arrive at the annual erosion rate. The R factor is based on rainfall and runoff, while K is the soil erodibility factor and depends on the type of soil.

What is tangible asset erosion?

Tangible asset erosion refers to the loss of value of tangible assets over time. Tangible assets are assets that can be physically observed and touched. Examples include:

What are some examples of profit erosion?

Profit erosion can occur for many different reasons. Some examples are: Revenue erosion (as mentioned above) Investment in unprofitable projects.

What are the three types of erosion?

The three types of erosion are: 1. Revenue Erosion . Revenue erosion occurs when there is a steady, long-term downwards trend of sales for a company. Revenue is the inflow of money that occurs from operating a business before deducting any expenses. Revenue erosion can occur for many different reasons.

What are some examples of increased expenses?

Some examples of increased expenses are: Increased interest expenses from a greater debt burden. Increased direct material costs. Increased direct labor costs. The above examples result in profit erosion if they cannot be passed through to customers via price increases.

What is erosion in business?

What is Erosion? Erosion is broadly defined as any negative impact that is directed towards an organization’s sales, profits, or assets. It is a risk factor that must be taken into consideration, especially when considering the company lifecycle or the economic market cycle.

Why is revenue erosion occurring?

Revenue erosion can occur for many different reasons. Some examples are: Products becoming obsolete due to new technological advancements. New competition taking away market share for a company. Current competition undercutting prices to take away market share for a company.

When does profit erosion occur?

Profit erosion occurs when there is a steady, long-term downwards trend of income for a company.

What causes rill erosion?

Rill erosion can be caused by rainfall or the movement of melting snow. Rather than soil washing away in sheets, rill erosion causes the water to cut through the soil, creating small channels on either side that measure no more than 3/10 of an inch in depth. These shallow flow paths through which rainwater flows are an example of rill erosion.

How does coastal erosion occur?

Coastal erosion is caused by water, but it doesn’t result directly from rainfall. Instead, coastal erosion refers to the impact that wave action has on the shoreline of oceans, seas and gulfs. As waves crash into land on the shore, the sand, rocks, cliffs or soil along the shoreline gets eroded. Increases in sediment in the water greatly amplifies the impact of coastal erosion.

What is water erosion?

Water erosion occurs when soil ends up being detached, removed, or washed away by water. It can be related to rainfall or running water, such as the movement of a significant quantity of melting snow. There are several examples of this type of erosion.

What is the most severe form of water erosion?

Tunnel erosion is the most severe form of water erosion caused by rainfall or melting snow. With this type of erosion, water drips through a hole in the surface, removing soil underneath ground level and carving out a tunnel. It may not be obvious from the surface that there is a hollow area below, at least in the early days after a tunnel forms. Once a tunnel has been in place for a while, the soil on the surface will begin to give way on its own, if it has not already collapsed due to weight being placed on it.

What happens when rain drops hit the ground?

When raindrops hit the soil, they cause individual soil particles on the ground to disperse and splash back down. This makes it difficult for rain to permeate the ground, so the water builds up on the surface and leads to the formation of moving water, in the form of runoff.

Why do rivers and streams wear away?

River and stream erosion occurs as a result of the impact of moving water on the soil on either side of a flowing body of water. As water flows, the banks of streams, rivers, creeks and other bodies of water can be worn away due to erosion.

How does gravity affect erosion?

The Role of Gravity in Erosion. Gravity plays a significant role in erosion, as gravity impacts the forces that cause erosion. For example gravity impacts how water flows, how water moves on or below the surface of the earth, and the action of waves. It also impacts wind and controls how objects move on the surface of the earth.

What are some examples of erosion?

Examples of Erosion: 1. Caves . Caves are carved out over thousands of years by flowing water, but that activity can be sped up by carbonic acid present in the water. As fresh water leeches through the rock and soil and drips through cracks, it gathers calcium carbide from the rock.

What is erosion in science?

Erosion Examples. Erosion. Erosion is the wearing away of an object or substance through an external force. Typically, erosion refers to the gradual wearing away of soil, dirt, rock, or other land structures over time through natural forces such as water or wind.

Why do rocks erode?

Cracks in Rocks. Through a process known as exfoliation, rocks can erode due to nothing more powerful than energy from the sun. When rocks are heated quickly by the sun, the rock expands quickly. This rapid expansion can cause small cracks to form, cracks which make the rock vulnerable to wind and water erosion. 4.

What causes erosion on the coast?

Coastal Erosion. The impact of waves hitting the shoreline can cause erosion of the coasts, especially during hurricanes or storm. Water can also get into cracks in the rock when a wave hits it, and that water will expand as it gets cold, causing the rock to break and be washed away.

How does erosion occur?

Erosion can occur from nothing more than the force of the Earth's gravity pulling on a section of rock, dirt, or land on a steep grade like a mountain, cliff, or hillside. Over time, the soil or rock becomes loose and slides downward due to the gravitation pull.

How do humans contribute to erosion?

Humans have actually contributed to erosion in negative ways, speeding up the naturally gradual process. Some instances include deforestation, in which trees are cleared to make room for development, only to have the soil eroded by wind and water once the trees and their roots are removed.

How much sediment does the Colorado River drop in Lake Powell?

The Colorado River, which flows through the Grand Canyon, drops as much as an estimated 100,000 cubic yards of sediment in Lake Powell each year. This type of soil erosion often comes as a result of water moving past the banks or walls of a river bed.

What are the different types of erosion?

In fact, there are different types of erosion, such as wind erosion, water erosion and anthropic erosion. Each one of them generates a different wear and that as a result originates different reliefs.

How is erosion produced?

It is produced by singularities or obstacles present in the channels. These can cause changes in the flow of water, increasing its erosive power. However, in this type of erosion the general conditions of the water flow are not modified.

What is river erosion?

We can say that this type of erosion is the wear of the land surface produced by the water channeled into river waters , that is , the water of rivers and also in streams, torrents or other water currents. The moving water constitutes a powerful agent capable of modifying the relief and the different geoforms that its passage originates make up the fluvial relief .

What is the term for sedimentary platforms in river valleys?

Also called alluvial terraces, they are sedimentary platforms in river valleys, which are formed by the deposit of sediments in those parts of the watercourse where the slope and, therefore, the speed of the current is lower.

What is sedimentary phase?

Sedimentary phase: it happens in the final part of the water body channel. There all the eroded material arrives and, due to the slower speed of the water, sediments are deposited. Here we talk about sedimentary rocks: types, classification and examples .

What causes sinuous deposits to form?

It occurs as a result of sediment carry-over. These begin to settle in the middle course, where the speed of the water begins to decrease. Under certain circumstances, the erosive force also acts on these deposits, wearing them down and transporting them to other parts of the course. As a result, sinuous deposits form that we call meanders.

What are the consequences of river erosion?

The reliefs formed by river erosion are one of the consequences of this process. However, we must mention that within river processes, river floods also occur, which are river overflows that cause excessive water content around the riverbeds. River floods not only wear down the surface of the riverbanks but also, depending on the geographical location where they occur, can cause great economic losses and even fatal disasters. Undoubtedly, moving water has enormous power that goes beyond the formation of relief.