Which statement is generally true of an investment that is highly volatile but has superior, long-term real rates of return?
<span>
It has low liquidity because selling would often require selling at a loss.
High volatile investments are investments that always fluctuates in the market. It can generate you very high income or very low income. It has low liquidity because when you sell it right away, you tend to sell at a loss.</span>
Answer:
$3,000 unfavorable
Explanation:
With regards to the above, the fixed overhead spending variance is computed as;
= Actual overhead - Budgeted overhead.
Given that;
Actual overhead =
Budgeted overhead =
= $63,000 - $60,000
= $3,000 unfavorable
Therefore, the fixed overhead spending variance is $3,000 unfavorable
Answer:
See below
Explanation:
We will first determine the overhead rate
= cost of manufacturing overhead / cost driver
We will distribute the cost driver which is machine hours
$159,000/32,000 = $4.97
$4.97 fixed + $3 = $8 predetermined overhead rate
We will now apply this to job machine hours
Job machine hours 30
Overhead: machine hours x
Predetermined rate = 30 × 8 = $240
Total cost $1,320 + $660 direct material + $240 overhead = $2,220
Then,
Unit cost = Total cost/ unit
= $2,220/10
= $222
Selling price
= cost + 40% cost
= $222 + $88.8
= $283.50
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Installation and start-up costs for utilities are called seed or start-up capital. This is further explained below.
<h3>What is start-up capital.?</h3>
Generally, start-up capital. is simply defined as the money an entrepreneur raises to cover the startup expenses of a new business until it is profitable.
In conclusion, It is termed seed or start-up funding for utility installation and startup expenditures.
Read more about start-up capital.
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