Answer:
a) Portfolio ABC's expected return is 10.66667%.
Explanation:
Some information is missing:
Stock Expected Standard Beta
return deviation
A 10% 20% 1.0
B 10% 10% 1.0
C 12% 12% 1.4
The expected return or portfolio AB = (1/2 x 10%) + (1/2 x 10%) = 10% (it is the same as the required rate for stock A or B)
The expected return or portfolio ABC = (weight of stock A x expected return of stock A) + (weight of stock B x expected return of stock B) + (weight of stock C x expected return of stock C) = (1/3 x 10%) + (1/3 x 10%) + (1/3 x 12%) = 3.333% + 3.333% + 4% = 10.667% <u>THIS IS CORRECT</u>
Options B, C, D and E are wrong.
Available Options:
a) The budget helps motivate employees to achieve sales growth and cost-reduction goals.
b) The budget provides managers with a benchmark against which to compare actual results for performance evaluation.
c) The planning required to develop the budget helps managers foresee and avoid potential problems before they occur.
d) All of the above.
Answer:
Option D. All of the above.
Explanation:
The reason is that when budgets are set every personnel in the organization is given a task along with the restriction on the use of excessive resources of the company by generating a standard number of output, which is benefitial to the company and the managers as well.
Furthermore, standard costs are used in budgeting to estimate the costs of the operations of the company which means that the standard cost would be used for actual units to compare the actual results to make meaningful conclusions.
At the end, the main benefit of the budgeting is that it highlights the potential issues in the operating systems of the organization which must be corrected to avoid the same advers outcome in the future.
So all of the statements are correct.
Answer:
Marginal cost is defined as the change in <u>total </u>cost when output changes by one unit in the short run.
Explanation:
<em>Marginal cost is defined as the change in total cost when output changes by one unit. In the short run.</em>
<em>It is the amount by total cost will increase as a result of producing additional one more unit of a product.</em>
Answer:
a. Total number of budgeted direct labor hours for the year = Direct labor hours for night lights + Direct labor hours for desk lamps
= 30,000*1/2 + 40,000*2
= 15,000 + 80,000
= 95,000 hours
b. Single plant-wide factory overhead rate using direct labor hours = Budgeted factory overhead / Budgeted factory hours
= $403,750 / 95,000 hours
= $4.25 per hour
c. Per unit factory overhead = Number of hours required to complete one unit * Factory overhead rate per hour
<u />
<u>Night light</u>
Per unit factory overhead = 0.5 * 4.25
Per unit factory overhead = $2.125 per unit
<u>Desk lamp</u>
Per unit factory overhead = 2 * 4.25
Per unit factory overhead = $8.50 per unit
Answer: 90 feet
Explanation:
From the question, we are told that Property owners on one street have petitioned the city to install paved alleys behind their homes and that Marcus has a rectangular lot that measures 90 feet by 140 feet.
He would pay the special assessment based on 90 feet which is the width of the rectangular lot.
