Answer:
$1,100
Explanation:
EBIT = Sales - Costs - Depreciation
= $9,000 - $6,000 - $1,500
= $1,500
Net income = EBIT - Tax @ 40%
= $1,500 - $600
= $900
Operating cash flow = Net income + Depreciation
= $900 + $1,500
= $2,400
Free cash flows:
= Operating cash flow - Increase in working capital - Capital expenditure
= $2,400 - $500 - $800
= $1,100
Answer:
Rs. 5993.75
Explanation:
The computation of the cost of laying the path is given below:
= {area of(pool +path)- area of pool }
= ((45 + 3.5) × (20 + 3.5)) - (45 × 20)
= (48.5×23.5) - (45 × 20)
= 1139.75 - 900
= 239.75 square meters
Now the cost is
= 239.75 × 25
= Rs. 5993.75
Answer:
A. True
Explanation:
In the case of absorption costing, the fixed manufacturing overhead should be incurred at the time when the units are generated or produced. While on the other hand, in the case of variable costing the fixed manufacturing overhead should be incurred at the time when the units are sold
Therefore the given statement is true
Hence, the correct option is a.
Answer:
1. B
2. A
3. D
4. C
Explanation:
1. Activity variance
B) the difference between a revenue or cost item in the flexible budget and the same item in the planning budget.
The activity variance is as a result of difference between the actual level of activity in the flexible budget to the assumed level of activity in the planning budget.
2. Planning budget
A) a budget created at the beginning of the budgeting period that is valid only for the planned level of activity.
Planning budget is a process of evaluating earnings and expenses and project their monetary intakes and outtakes for the future made by an individual or company.
3. Flexible Budget
D) a report showing estimates of what revenues and costs should have been, given the actual level of activity for the period.
Flexible budget adjusts with changes in volume and activity
4. Spending variance
C) the difference between the actual amount of the cost and how much the cost should have been, given the actual level of activity
This is unfavorable if the actual cost is greater than what the cost should have been and favorable if the actual cost is less than what the cost should have been.