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4 years ago

When the materials price variance is recorded at the time of purchase, raw materials are recorded as inventory at standard cost.

Business

1 answer:

andrezito [222]4 years ago

4 0

Answer:

a)True

Explanation:

The formula to compute the material price variance is shown below:

= Actual Quantity × (Standard Price - Actual Price)

Here the raw material of the inventory should be recorded at the standard price and the difference of standard pice & actual price shows the favorable and unfavorable variance

Therefore the given statement is true

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Differentiate between cash-basis accounting and accrual-basis accounting. Why is accrual-basis accounting the preferred method f

Umnica [9.8K]

Answer:

Reason : To ensure constant flow of cash

Explanation:

Accrual Basis of accounting records transactions when they meet definition and recognition criteria of Assets, Liabilities,Equity, Expense and Incomes.

This is different from cash-basis accounting which records transactions at the receipt or payment of cash.

Because of timing difference, the cash transactions (cash basis) can happen a late than the day of recognition of the elements (accrual basis).

Hence Revenue services demand that income tax be calculated on accrual basis to ensure a constant flow of cash whenever an entity transact.

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3 years ago

Wilbur decides to sell his collection of rare stamps through an online auction site. When he is filling out the information abou

jasenka [17]

Answer:

Wilbur cannot rescind the contract based on his unilateral mistake.

Explanation:

Lets suppose that I made an offer of $1000 which you accepted to buy my car on a phone call for $1000 and later in the same day a person offered me more money for the same car and I sold the car to him. You went to court and I said that I mistakenly made an offer of $1000 which means that every person who revoke the clauses will make lame excuses in the court. If this act is permitted then the law gives the people free hand whatever they desire to do with the contract. So for this reason this act was considered unethical and the court said that the mistakes that are unilateral are not be rescind.

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3 years ago

You have $100,000 available to invest. The risk-free rate, as well as your borrowing rate, is 4%. The risky portfolio has an exp

dlinn [17]

Answer:

c. borrow $50,000 at the risk-free rate

Explanation:

Options are: "invest $100,000 in the risk-free asset, borrow $25,000 at the risk-free rate, borrow $50,000 at the risk-free rate, invest $125,000 in the risk-free asset"

Standard Deviation of the portfolio = Weight of Risky assets * Standard Deviation of risky assets

30% = Weight of Risky assets * 20%

Weight of Risky assets = 30% / 20%

Weight of Risky assets = 1.50

Weight of Risk Free Assets = 1 - 1.50

Weight of Risk Free Assets = -0.50

Borrow from risk assets = 0.50 * $100,000

Borrow from risk assets = $50,000

Hence, If we want the standard deviation of our investment to be 30%, we must borrow $50,000

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3 years ago

Which combination of factors would result in the lowest monthly mortgage payment?

Alenkinab [10]

Interest rate and years of repayment

5 0

3 years ago

Read 2 more answers

Wylie has been offered the choice of receiving $5,000 today or an agreed-upon amount in 1 year. While negotiating the future amo

Studentka2010 [4]

Answer:

The answer is 14%

Explanation:

Formula for Future value (FV) FV = PV (1+ni)

Whereas FV= Future value, PV = present value, n= number of years, i= TVOM in percentage

Rearranging the formula for i

i = (FV/PV)-1

So, i = (5,700/5,000)-1

i = 1.14-1

i = 0.14

i = 14%

(0.14x100=14%)

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4 years ago