Answer:
C) The Actual Quantity (AQ) of direct materials used was less than the standard quantity for actual output
Explanation:
To be favorable (positive) the difference between standard and actual quantity needs to be positive.
The standard quantity will be calculate doing the standard per unit times the total units produced during the period.
Resuming Standard Quantity would be the expected for the actual output.
(A) refers to prices, this variance is for volume
(B) if standard is less than actual, it means we spend more raw materials than it should be, the variance will be unfavorable
(D) same as B if actual are higher (or standard is lower) then we spend more raw materials than expected, the variance is negative
(C) when actual is less, it means we use less than expected, we saved raw materials, the variance is favorable.
Answer:
Pull Strategy
Explanation:
The Pull Strategy is a marketing strategy which consists in having the customer seek the product by himself or herself.
The goal is to create consumer demand before kickstarting production.
In this case, we have a perfect example of a pull strategy, because Hyun will not start production unless it has proof of demand from a customer, the proof being a order.
Answer:
C
Explanation:
The GDP or gross domestic product measures the market value of all goods and services produced in country in a specific period of time. This year GDP should not include the log-splitter because Sally purchased it five years ago. We should include this year purchases: new parts, gasoline, oil. Also, we should include the market value of the 2 hours she spent repairing the log-splitter if she paid someone to do it or if someone paid her to do it, because this is a service. But the problem suggests that she repaired her own log-splitter, then we should not include it this year GDP.
Answer:
(1) NO As this maintenaince will be done in order to keep the current value It is an expenditure to avoid decay of the plant assets
(2) Yes it should be capitalizeds as increase the useful life of the assets (thus the depreciation will change as well as the useful years remaining increases
(3) Yes it should be. As increase the utility it will have a higher future positive cashflow in the future.
Explanation:
We are asked under which circumnstances the amont spend in the maintenance or overhaul should increase the plant asset account or be considered expense of the period.
Answer:
A. The segregated account should be reported as a non-current asset, the regular account should be reported as a current asset, and the overdraft should be reported as a current liability.
Explanation:
Cash which is segregated and deposited into a bond sinking fund is presented in a classified balance sheet as a non-current asset because its use is restricted. Bank overdrafts are presented as current liabilities, unless other accounts at the same bank contain sufficient cash to offset the overdraft. The operating account that has a positive balance, should be presented as a current asset.