Answer:
d. multiplying units to be produced by direct materials per unit.
Explanation:
To determine the total direct material, key parameters required are the direct material cost per unit and the number of units to be produced. The product of these two parameters gives the direct material cost required for production.
For example, if there are 10 units of an item to be produced and the direct material cost per unit is $4, the direct material cost needed for production is $40 derived from the product of the number of units and the direct material cost per unit.
Therefore, the right option is d. multiplying units to be produced by direct materials per unit.
Answer:
Temp Force required rate of return is 13%
The shareholders of B&B will have rights of dividend in the company's profit.
Explanation:
Temp Force company will require a rate of return based on the risk of the company. The beta factor determines the business risk of the company. For the Temp Force the beta factor is 1.2
Required rate of return of temp Force;
r = Rf + (Rm - Rf) * beta
r = 7% + (12% -7%) * 1.2
r = 13%
B&B shareholders will have voting rights in the company and they are eligible for any dividends declared by the company. They will have rights to elect the director and attend the AGM and EOGM. These rights are given to shareholders to maintain good corporate governance in the company.
Answer and Explanation:
The computation is shown below:
Fixed cost per unit is
= Higher Profit under Absorption costing ÷ units exceeded than sales
= $16,000 ÷ 1,000 units
= $16 per unit
Sales price per unit
= Contribution Margin Per Unit ÷ Contribution Margin Ratio
= ($16 + $14) ÷ (62.50%)
= $48
Variable Cost Per Unit is
= Sales Price Per Unit - Contribution Margin Per Unit
= $48 - $30
= $18 per unit
Unit sales volume is
= Total Profit under Absorption costing ÷ profit per unit
= $168,000 ÷ $14 per unit
= 12000 units
We simply applied the above formulas
Answer:
D) The set of decisions, the set of possible outcomes, and a value model that prescribes results.
Explanation:
Problem solving involves use of various methods to find solutions to problems faced by individuals and organisations.
It involves generation of ideas or decisions that can resolve the problem.
These ideas are now analysed to see how viable they are, can they be implemented, and what is the possible outcome.
The valid ideas are now used to create a value model that can effectively bring results.
The current ratio will remain the same as 1 only
The acid-test ratio will decrease.
- The current ratio will stay the same because there won't be a change in current liabilities, and the change in current assets won't have any net consequences because the asset will grow due to an increase in inventory, but it will also decrease by the same amount due to a decrease in cash, so the current ratio will stay the same.
- The acid-test ratio will decline since the numerator will shrink owing to a cash shortage, and the growth in inventory won't be taken into account because current assets aren't included in this ratio.
Learn about more acid-test ratios here
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