Answer:
Option B It presents variable cost as a slope coefficient
Explanation:
The reason is that the total cost function is:
Y = a + bx
The total cost in this case is Y, a is fixed cost as an intercept, b is variable cost represented as an slope and coefficient and x is level of activity which is independent of Y.
So the right answer is option B.
At the Saint Francis Hospital, an adult education director
uses What-if analysis to evaluate the interactions of
variables that contribute to the profitability of various potential seminars. A
What-If Analysis is the process of altering the values in cells to see how
those changes will affect the outcome of formulas on the worksheet.
The focal point of most ads is the center of interest, it’s what first catches your eye. It is the most important part of the page that everyone would notice and be persuaded by.
Answer:
The fixed overhead production-volume variance is $9,000 U
Explanation:
In this question, we are tasked with calculating the fixed overhead production-volume variance.
We start by calculating the fixed overhead applied to production.
mathematically that is equal to : 54,000 * 0.03 * 50 = 81,000
The budgeted fixed overhead = 90,000
Mathematically,
Fixed overhead production-volume variance = Budgeted fixed overhead - fixed overhead applied to production = 90,000 - 81,000 = $9,000 U
Answer:
All cash flows other than the initial investment occur at the end of periods.
All cash flows generated by the investment project are immediately reinvested at a rate of return equal to the discount rate.
Explanation:
Net present value method: In this method, the initial investment is subtracted from the discounted present value cash inflows. If the amount comes in positive than the project is beneficial for the company otherwise not.
In the net present value, the yearly cash flows other than the initial investment is occur at the end of the period as all the yearly cash flows are discounted at the present value factor.
And, the discount rate is equal to the rate of return
So, these two statements are correct.
