Answer:
Materials quantity variance and labor efficiency variance.
Explanation:
Material quantity variance is defined as the difference that exists between the actual amount of a material that is used in production and the expected amount to be used. It measures the efficiency with which a raw material is converted into product.
MQV is calculated by multiplying standard price of material by difference between standard quantity and actual quantity.
Labour efficienct rate on the other hand measure efficiency of using labour.
It is calculated by multiplying standard labour rate with difference between standard labour amount and actual labour amount.
Answer: marketing managers making pricing decisions.
Explanation:
Management's product and service choices and decisions can influence the cost behavior. The product design, location of plant, technology used in developing a product, product quality, features of product, distribution of product, profit margins, incentives, labor daily wages, and other factors all can influence the cost and pricing decisions of the product.
Answer:
Explanation:
Definition of simple terminologies ;
- A contractual agreement is an agreement which is made on future exchanges in order to buy or sell goods at a fixed price at a specified time period.
- LIBOR stands for London interbank offered rate which is the rate at which banks borrow money from other banks in london market. this rate is a fixed term by the british bankers association.
a) The implied LIBOR of the September Eurodollar futures of 96.4 is = 100 96.4 /400-=0.9%
(b) As we want to borrow money, it implies buying protection against high interest rates, which means low Eurodollar future prices. We will short the Eurodollar contract.
c) Number of contact to be entered into = One Eurodollar contract which is based on a $1 million 3-month deposit. As such, entering into hedge a loan of $50M, will automatically implies entering into 50 short contracts.
d) A true 3-month LIBOR of 1% means an annualized position (annualized by market conventions) of 1% x 4 = 4%. Therefore, our 50 short contracts will pay: [96.4 − (100 − 4) × 100 × $25] × 50 = $50,000.
The increased interest rate has made the loan more expensive as such, the loss to exposure will be compensated hence we have to pay the following amount ; ($50,000,000 x 0.01) - $50,000
= $450,000
Answer:
The answer is 6.72%
Explanation:
Calculating the imputed rate from a discount bond as follows:
( 1 + i )^n = FV / PV
( 1 + i )^3 = FV / PV, here FV= 1000 and PV= 727.25
so putting values in equation we have:
( 1 +i )^3 = 1000 / 727.25
( 1 + i )^3 = 1.375
solving for i
( 1 + i) = 1.375^1/3
( 1 + i ) = 1.112
i = 0.112 before tax rate
0.112 * (1 - tax rate) = after tax interest rate
0.112 * .60 = 0.0672 = 6.72%
thus the expected after tax cost of this debt issue is 6.72%
Answer:
The correct answer is C. the decline in the economic value of an asset over time
Explanation:
Depreciation : Depreciation is a decreasing value of the asset due to tear and wear, obsolesce, usage, etc
It is charged on the fixed assets which include plant and machinery, furniture and fixtures, building, computer, equipment, etc.
The sum of gross and net investment is not called the depreciation because gross investment is an expenditure which is incurred on new purchase while net investment is a difference between gross investment and deprecation. So, option B is incorrect.
Depreciation should not be charged on intangible assets because in intangible asset, the amortization is charged. Thus, option B is incorrect.
The decrease in the general price level is disinflation or inflation decreased. So, option D is also wrong
Hence, The correct answer is C. the decline in the economic value of an asset over time
