Answer:
From the list of options, Option A is the only correct one:
"the actual usage of materials was less than the standard allowed".
Explanation:
<em>Material usage variance</em>
A material usage variance occurs when the standard quantity required to active a particular level of production is higher or lower than than the actual actual quantity used. A favorable variance would mean than less quantity of materials were used than the standard to achieve a given output level. And an adverse variance would mean the opposite.
<em>Material price variance</em>
A material price variance occurs where materials are purchased at a price either lower or higher than the standard price. A favorable variance is recorded where the actual total cost of materials is lower that the standard cost. While an adverse variance implies the opposite.
From the list of options, Option A is the only correct one
<span>If local shell gasoline stations look at bp stations' prices as the primary method of determining its own prices, shell is using</span> competition-based pricing.
In this we considers costs have not much value and consider to be less important than competitor's prices, means competitor's price is important.
Answer:
a requirements contract.
Explanation:
A requirements contract is made between a company and one of its suppliers or vendors. In that contract, the supplier or vendor agrees to supply a certain amount of goods or services that the company requires, in exchange the company will only purchase the goods or services from that specific supplier or vendor.
Answer:
Present Value of Annuity is $1,263,487
Explanation:
A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity.
Formula for Present value of annuity is as follow
PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]
Where
P = Annual payment = $91,000
r = rate of return = 5.15%
n = number of years = 25 years
PV of annuity = $91,000 x [ ( 1- ( 1+ 0.0515 )^-25 ) / 0.0515 ]
PV of Annuity = $1,263,487
