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lesantik [10]
3 years ago
14

A production manager is evaluated based on the quantity of direct materials used in production. If the production line actually

uses materials to produce 50,000 units when the master budget shows materials needed for 44,000 units, the manager's evaluation should be based on a flexible budget. True or False
2.) Which of the following remains the same when comparing a flexible budget to a master budget?
A. Total sales.
B. Net income.
C. Total variable costs.
D. Total fixed costs.
Business
1 answer:
Shalnov [3]3 years ago
3 0

Answer:

1) True

2) D. Total fixed costs

Explanation:

1)  The manager's evaluation should be based on a flexible budget, so the statement is true.

The standard quantity of direct materials used should be based on actual production for a correct variance analysis.

2 ) Total fixed costs remains the same when comparing a flexible budget to a master budget.

Total fixed costs do not change in total within relevant range of production.

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Answer:

The major faults of measurement are:

  • Coverage
  • Measurement
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  • Response

Explanation:

During business research, the data collected during the survey can become very unusable due to errors arising from the factors listed above.

The problem of coverage arises when for instance an electronic survey is used to collect data from a sample population where 69% for instance, do not have access to a mobile phone or a computer.

Measurement problems during a survey speak to the ability to properly design a questionnaire in such a way that it elicits the right kinds of responses. This means asking the right questions so that the responses or answers are accurate. The irony of measurement error is that one's survey is useless if they got the questionnaire design wrong, regardless of whether or not the response rate was very high.

After administering a survey and there is little or no response, one is said to have an error in response rate. A low response rate increases the error margin of the survey as well as it's unreliability.

Sampling errors are said to occur when the sample size is too small or statistically homogenous such that it does not accurately represent the entire population. When this happens it is termed <em>sample frame error.</em>

Another error can occur when the researcher includes the wrong population or excludes the right population. This is called <em>Error in Population Specification. </em>

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2 years ago
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This is also called contractionary monetary policy and it causes interest rate to be higher there by reducing investments.

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