Answer:
A, B , and E
Explanation:
<u>A. Budgeted purchase prices were set without careful analysis of the market</u>
Budgets are prepared using estimated prices. As much as possible, the budget prices should be the same as market prices. It may happen that during price estimation, some aspects could have been ignored, leading to incorrect purchase prices. It could be possible that the budget prices are overstated. In such a scenario, there would be a favorable price variance to the business.
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<u>B. Materials prices decreased unexpectedly due to industry oversupply</u>
The supply and demand forces determine the prices of raw materials. Low supply will lead to an increase in price as many buyers chase few goods. Constant demand and supply create stable prices. A sudden increase in supply will lead to reduced prices, which will cause favorable variances to the business.
<u>E. The materials purchasing officer negotiated more skillfully than was planned in the budget.</u>
The purchasing manager does the actual buying in any organization. Should the manager be a skilled negotiator, the business stands a better chance of buying goods at low prices. In this case, the purchasing manager negotiated for better prices. The results will be a positive price variance for the company.
Based on the information given, the items that can be reflected in the account activity but that the person cannot account for include bank charges and transactions involving the use of ATMs.
From the complete information, it should be noted that there are bank charges that are charged by the banks. In this case, the account may not reflect the spending that has actually been done.
Also, there are taxes that are charged on the goods that the person bought. Therefore, this will be reflected on the account activity and will give rise to a higher value than the amount that the person actually spends.
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Answer:
D the answer is D
Explanation:
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Answer:Substitution ---B
Explanation:
When goods are closely related together such that they both give similar purpose , they are called Substitute goods.
Therefore when any of the substitute goods prices rises, Consumers will go for the cheaper alternatives which will provide more value for thier money.
Here, the rise in the price of Pepsi caused consumers to shift to a cheaper alternative which is Coke. Other substitute goods that can have the Substitution effect include beef and chicken, butter and margarine etc
