Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
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Answer:
(C) The RR is using a form of asset allocation for the client.
Explanation:
Given that Asset allocation is a term that describes the undertaking of an investment technique. This technique tries to offset risk with reward by diversifying the proportion of each asset in an investment portfolio based on the investor's preference, which is influenced by risk tolerance, and investment period.
Hence, in this situation, the right answer is option C: The RR is using a form of asset allocation for the client.
Answer:
$40,000 (U)
Explanation:
Given that,
Flexible-budget variance for materials = $2,000
Price variance for material = $38,000
Sales-volume variance = $13,000
Efficiency variance for direct manufacturing labor = $9,000 (F)
Flexible-budget variance for materials = Price variance for material + Efficiency variance for materials
2,000 (U) = 38,000 (F) + Efficiency variance for materials
Efficiency variance for materials = 2,000 + 38,000
= $40,000 (U)
Answer:
It would decrease
Explanation:
Return on equity is an example of a profitability ratio.
Profitability ratios measure the ability of a firm to generate profits from its asset
Using the Dupont formula, ROE can be determined using:
ROE = Net profit margin x asset turnover x financial leverage
ROE = (Net income / Sales) x (Sales/Total Assets) x (total asset / common equity)
If profit margin reduces and asset turnover and leverage remains the same, ROE would decrease
Answer:
COGS= $58,000
Explanation:
Giving the following information:
The year began with an inventory of $20,000, Purchases for the year were $45,000, and the Ending Inventory was $7,000.
To calculate the cost of goods sold, we need to use the following formula:
COGS= beginning finished inventory + cost of goods purchased - ending finished inventory
COGS= 20,000 + 45,000 - 7,000
COGS= $58,000