_______ is a non-cash expense representing the cost assets as they lose value over time

Which of the following statements about Generally Accepted Audit Standards are true?

lidiya [134]

Answer:

B) I and III

Explanation:

Generally Accepted Audit Standards are used for auditing private companies. They provide systematic guidelines to auditors when conducting audits on companies' financial statements. They check for the auditor's verifiability of the company's compliance to the Generally Accepted Accounting Principles (GAAP) as well as their accuracy and consistency of their records. Therefore, choices I and III are correct.

8 0

3 years ago

Acme Company’s production budget for August is 17,600 units and includes the following component unit costs: direct materials, $

Ivan

Answer:

Instructions are below.

Explanation:

Giving the following information:

Actual production in August was 18,810 units.

During August, 319,770 pounds of raw material were used that were purchased at $0.50 per pound.

The standard direct material cost per unit consists of 11 pounds of raw material at $0.7 per pound.

To calculate the direct material price and quantity variance, we need to use the following formulas:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (0.7 - 0.5)*319,770

Direct material price variance= $63,954 favorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Standard quantity= 18,810*11= 206,910

Direct material quantity variance= (206,910 - 319,770)*0.7

Direct material quantity variance= $79,002 unfavorable

7 0

3 years ago

Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $70,000 cash immediately

Setler [38]

Answer:

The net present value for each option is given below.

(1) $70,000 cash immediately

NPV = 70,000 * 1 = $ 70,000

(2) $24,000 cash immediately and a six-period annuity of $8,100 beginning one year from today, or

NPV = (24,000*1) + (8,100 *(1-((1+7%)^-6)/7%)) = $ 62,609

(3) a six-period annuity of $14,500 beginning one year from today

NPV = (14,500 *(1-((1+7%)^-6)/7%)) = $ 69,115

8 0

3 years ago

(a) Write down 5 projects you think will lend themselves well to a Cost Benefit Analysis. Include for each of them, reasons as t

kati45 [8]

Answer:

A)

Food chain project, Tech startup, Road construction , expansion of clothing line, construction of dams

B)

Investment in stocks, National economic planning , Railway construction , Employee housing, Investment in Insurance

C) The food chain project

D) Investment in stocks

Explanation:

A) 5 projects that will lend themselves well to a cost benefit analysis

Food chain project ; A food chain project can lend itself properly to cost benefit analysis, The owner or Financier of the project can estimate the exact costs to be incurred in adding various delicacies to the Food chain project and he can also evaluate the revenue that each delicacy can generate at a given time based on the demand hence cost benefit analysis can be applied here
A tech startup : A tech startup can effectively implement cost benefit analysis by evaluating the cost of employing programmers based on their input and the revenue expected to be generated from the Tech startup products.
Road construction project : A road construction project is usually broken down into different project phases and this phases help the project coordinator to have an overview of the cost benefit of the project.
Expansion of a clothing line : In The expansion of a clothing line Cost Benefit Analysis can be applied, I.e. the cost of setting up clothing stores in various regions will be calculated first and then the expected profits from those outlets can be determine within a period
construction of dams : The cost benefit analysis will compare the cost of building and the benefit / revenue to be generated in the long run

B) 5 projects that do not lend themselves to cost benefit analysis

Investment in stocks : The cost benefit analysis cannot be properly carried out in this can of project because some uncertainties associated with stocks
National economic planning project; Cost benefit analysis can not be properly implemented her because the sole aim of National economic planning is to sustain the economy and some uncertainties can erupt which was not included in the economic plan
Railway project : Due to the terrain of some areas the exact cost benefit analysis can not be properly implemented and also the scope of railway construction is broad in general.
Employee housing project : Cost benefit analysis cannot be implemented here because the housing project does not benefit the company that owns the building but just the employees
Investment in Insurance : The cost benefit analysis can not be properly implemented due to the uncertainties that life brings

C) In part A The best project for me is

The food chain project and this is due to is simplicity in analysis via the cost benefit analysis

D) In part B the Least project for me is

Investment in stocks and this is due to the Volatility and uncertainty surrounding stock investment and trading

5 0

3 years ago

Alternative price indexes

cluponka [151]

Answer:

-value of all goods and services produced in the economy this year

-this year's prices

-value of all goods and services produced in the economy this year

-the base year's prices

-bought by consumers

-the first scenario would have effect on the GDP deflator

-the second scenario would have effect on the GDP deflator

Explanation:

The GDP deflator is used in measuring inflation in the economy by measuring changes in prices of goods in the economy. It is used together with other indices such as consumer price index in arriving at a more accurate or balanced measurement of inflation I'm the economy. The GDP deflator would be affected above because it is more comprehensive in it's calculation or measurement as it doesn't take into account only a basket of goods and services like the Consumer price index does

6 0

3 years ago