Which situation best illustrates how production decisions are made in a command economy

A company uses sugar in producing its product. If the price of sugar doubles, which variance is directly impacted?A) Direct mate

Nastasia [14]

Answer:

B) Direct materials price variance

Explanation:

Company uses sugar while producing a product, that means it is a direct material for the product, further provided that cost gets doubled of buying a unit of sugar, that is actual rate is now twice of earlier rate.

Therefore since only direct material price variance uses actual rate it will be affected.

Direct Material Price Variance = (Standard Price - Actual Price) $\times$ Actual quantity.

Else labor variance does not use direct material price, therefore option C) and option D) are invalid further direct material quantity variance uses standard rate and no actual rate is used.

Therefore correct option is

D) Direct Material Price Variance

5 0

4 years ago

Glee Distribution markets CDs of the performing artist Unique. At the beginning of October, Glee had in beginning inventory 2,52

Margaret [11]

Answer:

The cost of goods available for sale. is 143,140.

Cost Per unit $9.22

Explanation:

Cost of Goods available for sale

Opening Inventory (2520 x 7) $17,640

Purchases

Oct. 3, ( 2,500 @ $8 ) $20,000

Oct. 19, ( 3,000 @ $10 ) $30,000

Oct. 9, ( 3,500 @ $9 ) $31,500

Oct. 25, ( 4,000 @ $11 ) $44,000

Total Purchase in October $125,500

Cost of Goods available for sale $143,140

Cost Per Unit = 143,140 / (2520+2500+3000+3500+4000 )

Cost Per Unit = 143,140 / 15,520

Cost Per Unit = $9.22 per unit

6 0

3 years ago

The trial balance for a business at a given point in time typically has much more detailed information than what is depicted on

Verizon [17]

Answer:

Going Concern Concept

Explanation:

The Information from a trial balance is usually shown at historic values and not market values. The financial statements also show the amounts in historic not Liquidation / market values.

Thus we say the entity is foreseen to be in operation in future thus it is a going concern. The concept applied therefore is the Going Concern Concept.

4 0

3 years ago

gain or loss on the disposal of assets is determined by comparing the disposed asset's book value to the value of any assets rec

frosja888 [35]

Answer:

The statement is: True.

Explanation:

The disposal of assets implies removing assets from a company's accounting books. By doing so, the company must record the gain or loss over the asset when the disposal happens. That is determined by comparing the book value of the disposed asset with the market value of the acquired assets -if any.

6 0

3 years ago

A company started the year with $3,750 of supplies on hand. During the year the company purchased additional supplies of $2,000

BARSIC [14]

Answer:

A. Debit Supplies Expense and credit Supplies for $5,000

Explanation:

The adjusting journal entry is shown below:

Supplies expense A/c Dr $5,000

To Supplies A/c $5,000

(Being supplies account is adjusted)

The supplies expense is computed below

= Opening Supplies balance + purchase value of an additional supplies - supplies still on hand at the end of the year

= $3,750 + $2,000 - $750

= $5,000

8 0

3 years ago