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:
False
Explanation:
The slope of the budget line is the ratio of the prices of that bundle of goods. It represents the price at which a consumer would be willing to substitute one good for the other in the same bundle of goods.
I hope my answer helps you
Answer:
Roman philosopher Seneca once said, “Luck is what happens when preparation meets opportunity.”
Explanation:
Answer:
$800,000
Explanation:
The computation of the taxes paid by the company in 2013 is shown below:
Year Taxable Income Carry forward amount Year-end amount
2010 -$4,000,000 $0
2011 $1,000,000 - $4,000,000 $3,000,000
2012 $2,000,000 -$3,000,000 $1,000,000
2013 $3,000,000 -$1,000,000 $2,000,000
Now the tax paid is
= $2,000,000 × 40%
= $800,000
Answer:
D. estimate price elasticity of demand by experimenting with different prices.
Explanation:
Price elasticity of demand is an economic concept which is a measure of the sensitivity of customers willingness to buy something to its price. If the customers readily change their buying behavior with a change in price of the product, it would mean that the demand for the product is elastic.
When firms are introducing new products, they generally determine the best selling price by experimenting with different prices and observing the buying behavior of customers. Then the choose the price which produces the maximum amount of revenue for the firm, which entails the price of the product and number of units sold.
