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3 years ago

Which of the following is not part of the flow of events in variance analysis?

Business

1 answer:

IgorC [24]3 years ago

7 0

Answer:

e. Working to ensure that all variances are favorable.

Explanation:

the steps in effective management of variance analysis

Identifying questions and their explanations

Preparing standard cost performance reports

Taking corrective and strategic actions

Computing and analyzing variances

So the option is E.

Working to ensure that all variances are favorable.

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Williams Corp. is considering signing contracts that will obligate the firm to purchase 100000 Swiss Francs worth of computer eq

ella [17]

Answer:

$80,000

Explanation:

Given that at the end of each quarter, William corporation will purchase 100,000 Swiss francs worth of computer equipment for next 2 years. A local high school will still purchase this computer equipment at $89,000 each quarter for the next 2 years.

This means, we have the following:

Cost of purchase = 100,000 * number of quaters = 100,000 * 8 = 800,000

Convert to USD at an exchange rate of $0.79 = 800,000 * 0.79 = $632,000

Cost of purchase in USD = $632,000

Also, find the revenue generated after selling the computer equipments to the high school.

Revenue generated = $89,000 * number of quaters = $89,000 * 8 = $712,000

Williams' profit or loss would be calculated using the following:

Profit(loss) = Revenue generated - Cost of purchase

= $712,000 - $632,000

= $80,000

Since we have a positive value, Williams would make a profit of $80,000 through out the life of the contract.

4 0

3 years ago

If you bought a share of common stock, you would probably expect to receive dividends plus an eventual capital gain. Would the d

larisa86 [58]

Answer: Yes, the distribution between the dividend yield and the capital gains yield would influence the firm’s decision to pay more dividends rather than to retain and reinvest more of its earnings.

Explanation:

Yes, If a company decides to increase its dividend payout ratio, the dividend yield component will rise, but the expected long-term capital gains yield will decline as there is less to reinvest in the company. Also, if the company doesn't pay out dividends, there's more to reinvest in the company. Stable and older companies that are not on a growth objective rely on investors that prefer dividends more than share price appreciation. On the other hand, emerging companies, are inclined to share price appreciation to attract investors. Investors understand that all retained earnings are going towards marketing and growth objectives.

6 0

3 years ago

The optimal capital structure has been achieved when the: debt-equity ratio is equal to 1. debt-equity ratio results in the lowe

icang [17]

The optimal capital structure can be realized if : Debt-equity ratio selected results in the lowest possible weighted average cost of capital.

An optimal capital structure can be regarded as best mix of debt as well as equity financing which maximizes a company's market value.

And as well minimizing its cost of capital, it can be realized when Debt-equity ratio that is been selected, gives the lowest possible weighted average cost of capital.

Learn more at:

brainly.com/question/10782180?referrer=searchResults

3 0

2 years ago

The rate of return on the common stock of Flowers by Flo is expected to be 15 percent in a boom economy, 7 percent in a normal e

sertanlavr [38]

Answer:

the Expected rate of return will be 8.2%

the variance will be 0.001296

Explanation:

We will calculate the Expected Rate of Return which is the sum of the wieghted return based on their probabilities:

return of 0.15 probability 20% = 0.03

return of 0.07 probability 70% = 0.049

return of 0.03 probability 10% = 0.003

expected return = 0.082 = 8.2%

Now to calculate the variance we do:

∑(rk-ERR)^2 x pk

The sum of the difference between the expected rate and the escenario rate, power two, and multiply by their posibility

$(0.15-0.082)^{2}\times0.20+(0.07-0.082)^{2}\times0.70+(0.03-0.082)^{2}\times0.10$

the variance will be: 0.001296

3 0

3 years ago

A politician attempts to gain support for her campaign for city mayor by releasing a poll showing that almost 70 percent of resi

Dafna11 [192]

Answer: consensus

Explanation: In simple words, it refers to the psychological phenomenon which states that the likelihood that an individual is going to perform an activity increases when he or she thinks that their potential act aligns with the willingness of others that are related to the outcomes.

In the given case, the politician is trying to persuade that majority of the voters are in his favor. This idea will generate a perception that majority are in his favor so there must be something positive in him.

Hence we can conclude that he is using consensus.

8 0

3 years ago