Answer:
So a favorable material price variance might be more than offset by an adverse usage variance
Explanation:
<em>Material price variance</em>
<em>A material price variance occurs where materials are purchased at a price either lower or higher than the standard price. </em>A favourable variance is recorded where the actual total cost of materials of a given quantity is lower that the standard cost. While an adverse variance implies the opposite
<em>Material usage variance</em>
<em>A material usage variance occurs when the standard quantity required to active a particular level of production is higher or lower than than the actual actual quantity used.</em> A favorable variance would mean than less quantity of materials were used than the standard to achieve a given output level. And an adverse variance would mean the opposite
<em>Relationship between Usage variance and Price variance</em>
Where savings are made from purchase of cheap and inferior quality materials these might lead to an adverse usage variance by a greater value .This is so because workers might need to use a larger quantity ( more than the standard required) of a low-quality materials to achieve production.
So a favourable material price variance might be more than offset by an adverse usage variance
Answer:
Consumer price index; A consumer price index measures changes in the price level of a weighted average market basket of consumer goods and services purchased by households.
Answer:
1. a decrease in the price of natural gas
Explanation:
Given that homeowners choose to heat their houses with either natural gas or heating oil. It means that natural gas and heating oil are substitute products.
If there will be an increase in the demand for natural gas, there will invariably be a decrease in demand for heating oil.
From the options given, a decrease in the price of natural gas will result in and increase in it's demand.
Answer:
C:an increase in both the inflation and real growth rates in the short run.
Explanation:
According to the AD-AS model, if the economy is initially at its long-run potential growth rate, then a temporary increase in the growth rate of investment spending will cause an increase in both the inflation and real growth rates in the short run.
Answer:
1. Available to finance expenditure of the current period
Explanation:
Government Accounting is concerned with propriety i.e judicious use of resources and allocation of government funds so as to ensure efficient performance of government entities.
Efficiency refers to input/output ratio whereas effectiveness refers to achievement of government programs.
Government requires funds for allocation to various projects which require sanctioning by an authority.
In the same context, the concept of "available" refers to the availability of funds to meet the current period expenditure and liabilities.
