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Neporo4naja [7]
3 years ago
5

Troy Company budgeted​ $12 million for customer service​ costs, but actually spent only​ $10 million. Which of the following sta

tements is the best course of action for management to take in this​ instance? A. Management will investigat this $2 million favorable variance to ensure that the cost savings do not reflect skimping on customer service.
B. Because this $2 million variance is favorable, management does not need to investigate further.

C. Management will investigate this $2 million unfavorable variance to try to identify and correct the problem.

D. Management should not investigat every major variance, especially an unfavorable variance.
Business
1 answer:
irinina [24]3 years ago
3 0

Answer:

The correct answer is A

Explanation:

A variance which is favorable, although have a positive sign for any company could not be ignored completely as ti could be a consequence of compromising on the quality of service of the customer being provided which could affect the company in the long run. So, it is very vital to keep a check on the favorable as well as on the unfavorable variances.

So, Management should investigate the $2 million favorable variance in order to ensure the cost savings which should not reflect on the customer service.

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Last year, DJ's Soda Fountains, Inc. reported an ROE = 27 percent. The firm's debt ratio was 50 percent, sales were $9 million,
notsponge [240]

Answer:

b. $1.82m

Explanation:

Capital Intensity ratio = Total aasets / sales

1.5 = Total Assets / 9m

Total Assets = 9m x 1.5 = 13.5

ROE = Total Income / Shareholders equity

27% = Total Income / (13.5 x 50%)

27% = Total Income / 6.75

Total Income = 27% x 6.75

Total Income = 1.8225

Total Income = 1.82 (Rounded)

The correct option is b. $1.82m.

7 0
3 years ago
Budgeted sales for the month at 4,600 units. Budgeted variable selling and admin expense is $7.30 per unit. Budgeted fixed selli
Viktor [21]

Answer:

$79,120

Explanation:

Calculation for the budgeted cash disbursement amount for selling and administrative expense for the month

First step is to calculate the Total variable selling and administrative expense

Using this formula

Total variable selling and administrative expense= Budgeted unit sales for August × variable selling and administrative expense per unit

Let plug in the formula

Total variable selling and administrative expense= 4,600 × $7.30

Total variable selling and administrative expense= $33,580

Second step is to calculate the Total fixed selling and administrative expense

Total fixed selling and administrative expense

= Budgeted fixed selling and administrative expense - Depreciation per month

Let plug in the formula

Total fixed selling and administrative expense= $51,980 - $6,440

Total fixed selling and administrative expense=$45,540

Now let calculate the budgeted cash disbursement amount for selling and administrative expense for the month

Using this formula

Budgeted cash disbursement = Total variable selling and administrative expense + Total fixed selling and administrative expense

Let plug in the formula

Budgeted cash disbursement= $33,580 + $45,540

Budgeted cash disbursement= $79,120

Therefore the budgeted cash disbursement amount for selling and administrative expense for the month will be $79,120

4 0
3 years ago
Because we often cant choose who our coworkers will be we should
Vanyuwa [196]
Practice working with others even if you don't fell comfortable with this person, or necessarily like them at all.
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3 years ago
The managers at Harris Pizza in Boston have tracked the tips received by their drivers along with the total bill to the customer
Marina86 [1]

Answer:

Scatter Diagram.

Explanation:

Scatter Diagrams are convenient mathematical tools to study the correlation between two random variables. As the name suggests, they are a form of a sheet of paper upon which the data points corresponding to the variables of interest, are scattered.

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3 years ago
Money managers:
yawa3891 [41]
The answer is D) are on the "but side" of Wall Street.
Just read the text. I'm 100% sure. Text below.

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3 years ago
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