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ioda
3 years ago
6

Standard costs are used in the calculation of: Multiple Choice Quantity and sales variances. Price variances only. Price, quanti

ty, and sales variances. Price and quantity variances. Quantity variances only.
Business
1 answer:
Tju [1.3M]3 years ago
8 0

Answer:

Price and quantity variances.

Explanation:

Standard cost in business management refers to the amount of money a product is supposed to cost in manufacturing it. It is a management tool that can be used to measure efficiency in the level of output or production of goods and services at a specific period of time.

In Financial accounting, the difference between the actual cost of each unit of a product and its standard cost is referred to as variance. In order to determine the standard cost of a product, the expected quantity of the product is multiplied by an expected price.

Standard costs are used in companies for a variety of reasons such as;

1. They're used to estimate the cost of an inventory.

2. They're used to plan direct labor, variable factory overhead and direct materials.

3. Standard costs are used to control costs.

However, standard costs cannot be used to indicate where changes in technology and machinery need to be made rather an actual cost should be used.

Additionally, the standard cost of each unit of a product manufactured in a business firm is categorized into two (2) and these are;

I. Price standard.

II. Quantity standard.

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ABC, Inc. produces a product that has a variable cost of $2.50 per unit. The company's fixed costs are $30,000. The product is s
Alex777 [14]

Answer:

The amount of sales that will be necessary to earn the desired profit is 16000 units

Explanation:

To get the amount of sales to earn $10000, we make the following equation.

Profit =Sales -variable cost-fixed cost

Profit=10000

Sales=$5.00x

Variable cost= $2.50x

Fixed cost=$30,000

Replacing,

10000=5x-2.5x-30000

10000+30000=2.5x

x=40000/2.5

x=16000

5 0
3 years ago
You are considering two home security companies for your new house. The first company offers free installation and equipment, bu
Vesnalui [34]

Answer:

The second option is the cheapest.

Explanation:

Giving the following information:

The first company offers free installation and equipment, but will charge you $401.00 per year forever. The second company charges $783.00 for installation, but will charge you $204.00 per year forever. Assume that payments are at the END of the year. Your personal interest rate is 5.00% per year

To calculate the present value, we need to use the formula for a perpetual annuity:

PV= Cf/i

Cf= cash flow

i= interest rate

Option 1:

PV= 401/0.05= $8,020

Option 2:

PV= 204/0.05 + 783/1.05= $4,825.71

The second option is the cheapest.

5 0
3 years ago
A landowner owned a large piece of property containing an inn and a bakery. She entered into a contract to sell the property to
pickupchik [31]

Answer:

The most likely result at trial is that the landowner's claim for specific performance will be successful, and she will be awarded the entire price of contract.

Explanation:

When there isn't a statute, the buyer bears the risk of loss when property subject to a contract for sale is destroyed without fault of any party prior to the date specified for closing. Unless the contract specifies otherwise, the buyer must pay the contract price even if the property is damaged by fire.

The inn was burned down in this case after the landowner and the buyer signed a contract for the sale of the property, but before the closing date. The contract appears to be silent on the risk of loss, and no appropriate statute exists. As a result of the common law rule, the buyer bears the risk of loss. Therefore, the landowner has the right to particular execution of the contract, which implies that the entire stipulated contract price must be paid by the buyer.

Regardless of the property's drop in worth owing to the fire, the $1 million contract price must be paid by the buyer because he bears the risk of loss.

Therefore, the most likely result at trial is that the landowner's claim for specific performance will be successful, and she will be awarded the entire price of contract.

6 0
2 years ago
On January 1, 2021, Calloway Company leased a machine to Zone Corporation. The lease qualifies as a sales-type lease. Calloway p
Delicious77 [7]

Answer:

DR Interest receivable                                  26,400

CR Interest revenue                                                       26,400

Explanation:

As first lease has already been paid, the amount left of the lease is;

= 280,000 - 40,000

=$240,000

Interest is 11% so the interest to be received in December is;

= 11% * 240,000

= $‭26,400‬

This will be debited to Interest receivable as it is money owed and credited to Interest revenue as it is money earned.

6 0
3 years ago
Why is inflation both good and bad how does the government try to control it?
Kaylis [27]
<span>Inflation is good because it keeps the economy growing as wages increase and demand for goods goes up, but if inflation gets high then the economy can become overheated when prices go up too fast and people can't afford goods. The Federal Reserve Bank, if you're in the USA, will then raise interest rates to make loans more expensive and rewarding people for not spending money, which slows down the economy back to a healthy state.</span>
6 0
3 years ago
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