Answer:
whether or not to purchase a new machine for the production line
Explanation:
Capital budgeting decision is the process by which a company sets aside money for the purchase of capital assets such as new machinery, new plants, research and development, and new product.
Capital budgeting is considered to be both a financial decision and an investment decision. Apart from cost incurred by making a purchase, the company considers the future cash flows the capital asset will generate.
Purchasing a new machine for the production line is a capital budgeting decision
Answer:
= $27,000 favorable
Explanation:
<em>Direct material price (cost) </em><em>occurs when the actual quantity of materials are purchased at an actual price per unit higher or lower than the standard price.</em>
<em>Direct material efficiency( usage variance)</em><em> occurs when the actual quantity used used to achieve a given output is more or less than the standard quantity expected to achieve same.</em>
The Direct material total cost variance is the sum of the direct material price variance and the direct material usage variance.
So we can determine the total direct materials variance of the company as follows:
= 9,000 unfavorable + $36,000 favorable
= $27,000 favorable
Answer:
The correct answer is False.
Explanation:
Commercial credit has its importance in that it is an intelligent use of short-term liabilities of the company to obtain resources in the least expensive way possible. For example, accounts payable constitute a form of commercial credit. They are the short-term credits that suppliers grant to the company. Among these specific types of accounts payable are the open account which allows the company to take possession of the merchandise and pay for them in a certain short term, the Commercial Acceptances, which are essentially checks payable to the supplier in the future, the Notes which is a formal recognition of the credit received, the Consignment in which no credit is granted and ownership of the goods never passes to the creditor to the company. Rather, the merchandise is sent to the company with the understanding that it will sell it for the benefit of the supplier, withdrawing only a small commission for the utility.
A long-term loan is usually a formal agreement to provide funds for more than one year and most are for some improvement that will benefit the company and increase profits. An example is the purchase of a new building that will increase capacity or machinery that will make the manufacturing process more efficient and less expensive. Long-term loans are usually paid from the profits. Mortgage: It is a conditional transfer of property that is granted by the borrower (debtor) to the lender (creditor) in order to guarantee the payment of the loan. Importance: It is important to note that a Mortgage is not an obligation to pay since the debtor is the one who grants the mortgage and the creditor is the one who receives it, in case the lender does not cancel said mortgage, it will be taken away and will be transferred to the borrower. It should be noted that the purpose of the mortgages by the lender is to obtain some fixed asset, while for the borrower it is to have security of payment through said mortgage as well as to obtain a profit from it through the interest generated. For the borrower it is profitable due to the possibility of obtaining a profit through the interest generated from said operation.
A personal articles floater is used insure more valuable property like this. It goes beyound the limitations of a homeowner's policy.
Answer:
Terrace Corporation
Equivalent Unit
% D.Material % Conversion
Completed transferred 57,600 100% 57,600 100% 57,600
to drying
Ending Inventory of WIP 7,200 100% 7,200 60% 4,320
Total 64,800 64,800 61,920
Note:
Ending Inventory of Wip = Opening WIP Inventory + Added(Started) - Transferred out = 3,600 + 61,200 - 57,600 = 7,200 pounds