Answer:
The advantages of requiring both the original and final appropriated budget amounts are:
1. It enables comparison of original (static) budget with the final (flexible) budget.
2. From the comparison, management assesses performances based on actual performance versus original and final budgets respectively.
3. The significant changes based on the level of activity are easily determined.
Explanation:
The use of original and final budgets helps in the comparison with actual performance. It clearly shows the effect of the level of activity on budget performance.
Answer:
B) The stock price will not change, because the market had already incorporated the information about the FDA approval announcement in the stock price.
Explanation:
As explained in the question, the stock market consensus has been that even after the new drug was released, the stock price, and the earnings per share of the pharmaceutical company will remain the same, therefore, there will no volatility.
Answer:
See below
Explanation:
Preparation of traditional income statement
Sales $600 × 6,700. $40,20,000
Less variable cost
The answer is "nominal damages".
Nominal damages alludes to a harm or damage grant that is issued by a court when a legitimate wrong has happened, yet where there was no real budgetary misfortune because of that lawful wrong. Regularly, when an nominal damage grant is utilized, the offended party will be granted $1 or $2. This may appear to be senseless, however nominal damages fill an essential need.
