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inessss [21]
3 years ago
5

Activities A, B, and C are part of the same project. Activity A is worth $200, is 100% complete, and actually cost $200. Activit

y B is worth $75, is 90% complete, and actual cost $120 so far. Activity C is worth $200, is 75% complete, and has cost $175 so far. The total budget is $1,000. What is the Cost Variance (CV) for the project
Business
1 answer:
kobusy [5.1K]3 years ago
6 0

Answer:

Cost Variance (CV) for the project is negative $77.5

Explanation:

The total amount budget for all 3 activities = Activity A worth $200 + Activity B worth $75 + Activity C worth $200 = $475

The total value completed = activities cost x % complete = $200*100% + $75*90% + $200*75% = $417.5

The actual cost till now = $200 + $120 + $175 = $495

The cost variance = The total value completed - The actual cost till now = $417.5 - $495 = ($77.5)

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When analyzing financial statements it is important to recognize that accounting distortions can arise. Accounting distortions a
Lunna [17]

Answer:

The correct answer is B. arise often through application of (correct) accounting principles .

Explanation:

Accounting analysis is an important precondition for an effective financial analysis. This is because the quality of the financial analysis, and the inferences made, depends on the quality of the implicit accounting information, the raw material for the analysis. Even though the accounting according to the accumulation principle allows to perceive the financial performance and condition of a company, which is not possible in the case of cash-based accounting, the imperfections of the company can distort the economic content of the financial reports.

5 0
3 years ago
Hillary can invest her family savings in two assets: riskless treasury bills or a risky vacation home real estate project on an
galina1969 [7]

Answer:

The expected return on her portfolio is B) 11.8%

Explanation:

Hi, the expected return of a portfolio can be found by multiplying the weight of each of the assets times each of its expected return, that is:

E(portfolio)=E(Tbills)*Weight(Tbills)+E(other)*Weight(other)

So everything should look like this

E(portfolio)=0.04*0.70+0.3*0.3=0.118

The expected return of the portfolio is 11.8%, that is option B)

Best of luck.

7 0
4 years ago
You decide to purchase an equal number of shares of stocks of firms to create a portfolio. If you wished to construct an index t
Bond [772]

Answer:

Price weighted index

Explanation:

A price weighted index is an index used in stocks where each company that is part of the index makes up a fraction of the total, and is proportional to its price per share.

Higher weight is given to sticks that have higher prices.

Rice weighted index is a good way to track track portfolio performance that best match for your portfolio.

3 0
3 years ago
Carson County State Bank has a ratio of equity capital to total assets of 2.5%. The FDIC which regulates this bank has determine
Elenna [48]

Answer:

compliance risk

Explanation:

Compliance risk -

It refers to the risky situation , which can be due to some financial forfeiture , legal penalties , loss of material , when the company fails to follow the rules and  regulations , is referred to as compliance risk .

Hence , from the given scenario of the question,

The correct type of risk involved is compliance risk .

6 0
3 years ago
Western Energy makes quarterly deposits into an account reserved for purchasing new equipment two years from now. The interest p
Iteru [2.4K]

Answer:

a. 2 years

b. 1 year

c. 12 times

Explanation:

Interest period is the duration of the deposit. It is the length of time the money would remain in deposit. This is 2 years according to the question

Compounding period = number of times interest would be paid. In the question, this is a year. So interest would be paid every year

The compounding frequency - it is the number of times the deposit would be compounded. It is 12 months

The future value of the deposit can be determined using this formula :  

FV = P (1 + r/m)^nm

FV = Future value  

P = Present value  

R = interest rate  

N = number of years

m = number of compounding  

8 0
3 years ago
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