Answer: Direct materials quantity variance.
Explanation:
Direct Material quantity variance is the difference between the actual quantity of materials used in production and the standard quantity that was supposed to be used, multiplied by the standard price of the material.
It is a method that checks the company's efficiency is being able to use raw materials to produce goods. If the Actual quantity needed is greater than the Standard quantity, this will be considered an Unfavorable Variance and mean that the company was not efficient in using the materials.
Causes of this can be low quality of materials and inadequate employee training.
Answer:
Explanation:
c. Determine the amount of prepaid insurance the company will report on its pro forma balance sheet at the end of the fourth quarter.
The answer is 5400 because "at the end of the 4th quarter is only consists of 3 months (oct-dec). By taking the total amount you paid for all 6 months minus what you have to pay for 3 months.
<span>Variances allow the business owner to supervise
their business better by taking well-versed decisions based on how the business
really performed against the budgeted performance. Additionally, it also
highlights reasons or different causes for the disparity in the projected
income or expenses.</span>
Answer: 44%
Explanation:
In probability, Independent event is simply an event that doesn't have anything to do with the occurrence or non-occurrence of another event.
From the question, we are informed that likelihood of Company A's stock price rising is 20%, and the likelihood of Company B's stock price rising is 30% and they are both independent.
Therefore, the probability that the stock price of at least one of the companies will rise goes thus:
P(at least one will rise) will be:
= 1 - P(both fall)
= 1 - [(1-0.20) × (1-0.30)]
= 1- (0.8 × 0.7)
= 1 - 0.56
= 0.44
= 44%
