Answer: C. 50%
Explanation:
From the above question, If conversion costs are added evenly throughout the production process and the unit have made it 50% of the way through the production process then the percentage completion for conversion costs is 50%
Answer:
Price / Earning ratio = 10
Explanation:
the P/E ratio will be determinate as follow:
Thus, the P/E will be 500/50 = 10
the price earning ratio stand for the amount of time required to payback the investment. In this case, 10 years as the market value is 500 dollars and eahc year the share earn 50 dollars
Answer:
A) $704,000.
Explanation:
For computing the cash payments we need to calculate the following amounts which are as follows
Total purchases = cost of goods sold + ending inventory - opening inventory
= $720,000 + $188,000 - $200,000
= $708,000
Now cash payment to merchandise is
= Beginning account payable balance + purchased made - ending account payable balance
= $80,000 + $708,000 - $84,000
= $704,000
Hence, the correct option is A. $704,000
Answer: Points of indifference
Explanation: Point of indifference can be defined as that level of EBIT at which two alternative financial plans have same amount of net income. It is used by managers as an evaluating tool, when it comes to choose between two cost structures which are alternative of one other.
In the given case, the company must have build point of indifference before launching of new product, and must have expected higher profits than normal beer.
Answer:
1. B
2. A
3. D
4. C
Explanation:
1. Activity variance
B) the difference between a revenue or cost item in the flexible budget and the same item in the planning budget.
The activity variance is as a result of difference between the actual level of activity in the flexible budget to the assumed level of activity in the planning budget.
2. Planning budget
A) a budget created at the beginning of the budgeting period that is valid only for the planned level of activity.
Planning budget is a process of evaluating earnings and expenses and project their monetary intakes and outtakes for the future made by an individual or company.
3. Flexible Budget
D) a report showing estimates of what revenues and costs should have been, given the actual level of activity for the period.
Flexible budget adjusts with changes in volume and activity
4. Spending variance
C) the difference between the actual amount of the cost and how much the cost should have been, given the actual level of activity
This is unfavorable if the actual cost is greater than what the cost should have been and favorable if the actual cost is less than what the cost should have been.
