The answer is "<span>this could be an example of a ceiling effect".
</span>
The term ceiling effect refers to an estimation restriction that happens when the most astounding conceivable score or near the most noteworthy score on a test or estimation instrument is come to, in this way diminishing the probability that the testing instrument has precisely estimated the proposed domain.
Answer:
For (a) $21250 favorable (b) $21300 Unfavorable
Explanation:
Solution:
Now,
(a) The Standard rate of variable overhead = $450000/60000 = $7.50 per hour
so,
The Variable factory overhead controllable variance = Actual variable overhead costs - Standard variable overhead costs
Gives,
= (725000-262500)-(64500*7.50) = $21250 favorable
(b) The fixed factory overhead volume variance = Budgeted overhead - standard overhead
= 262500 - 262500*64500/60000
Therefore,
= $21300 Unfavorable
Answer:
a. $265,336
Explanation:
we are told to calculate which amount will make both payments equal:
- payment 1 = $1,000,000 in 5 years
- payment 2 = $500,000 now + ? in 5 years
in order to be able to compare them, we must determine the value of the $500,000 paid now in 5 years:
future value = present value x (1 + interest rate)ⁿ
future value = $500,000 x (1 + 0.08)⁵ = $734,664
$1,000,000 = $734,664 + ?
? = $1,000,000 - $734,664 = $265,336
Answer: The current market price is below the PV
Explanation:
The discounted cash flow method is when the time value of money is being used to value a project, security, company, or an asset.
When the discounted cash flow method is used to determine the appropriate value of a security, it is vital to buy the security when the current market price is below the present value.
Answer:
Lump-sum salary increase.
Explanation:
A lump-sum salary increase is an amount paid instead of increase in salary. It is not added to the fixed base salary, it is instead given in the form of a single cash payment, as it is the case with Cindy here. This is why it is also known as lump sum bonus, because it is given as a single payment, as it was in Cindy’s case, all given at the beginning of the year.
