Answer:
Fixed overhead volume variance
= (Standard hours - Budgeted hours) x Standard fixed overhead rate
= (11,000 - 10,000) x $1.35
= $1,350(F)
The correct answer is A
Standard fixed overhead rate
= <u>Budgeted overhead</u>
Budgeted direct labour hours
= <u>$13,500</u>
10,000 hours
= $1.35 per direct labour hour
Explanation:
Fixed overhead volume variance is the difference between standard hours and budgeted hours multiplied by standard fixed overhead application rate. Standard fixed overhead application rate is the ratio of budgeted overhead to budgeted direct labour hours.
Answer:
TRUE
Interest income received by a cash basis taxpayer is generally reported in the tax year it is received.
Answer:
<h2>The accounting scandals of the early 2000s</h2>
led many people to question the legitimacy of:
allowing an accounting firm to do both consulting and auditing work for the same company.
Explanation:
1) Enron and WorldCom fell from grace during the scandal. And Sarbanes Oxley Act of 2002 was introduced to regulate the practise of auditing, which was before self-regulated.
2) People felt that accounting firms were getting so much revenue from consulting that they did not pay much attention to their auditing work.
3) They also felt that the consulting relationship was jeopardizing their responsibilities and commitments as independent auditors.
4) Since they were involved in consulting and offering management services, they paid a lip service to their main responsibilities and directly compromised their positions as verifiers of the truth and fairness in the presentation of financial statements.
5) According to Paul Krugman of The New York Times, “the Enron debacle is not just the story of a company that failed; it is the story of a system that failed. And the system didn’t fail through carelessness or laziness; it was corrupted.” People felt that the corruption arose from the performance of these separate services by the same auditing personnel and firm.
Answer:
B) coercive power.
Explanation:
There are two ways of influencing others to follow the instruction or to get the process in the right order.Those two ways are: Reward power and coercive power.
Coercive power: It is the ability of the authority to use power or force against people or subordinates to follow the instruction or to get them disciplined. It is an act of punishment for committing errors so that it does not get repeated.
In the given case, the manufacturer decided to punish resellers for their action. As Manufacturing decided to slow down deliveries and postpone product availability to these resellers.
When the value of technology utility and network externality benefits exceeds monopoly Costs.
