Answer:
So a favorable material price variance might be more than offset by an adverse usage variance
Explanation:
<em>Material price variance</em>
<em>A material price variance occurs where materials are purchased at a price either lower or higher than the standard price. </em>A favourable variance is recorded where the actual total cost of materials of a given quantity is lower that the standard cost. While an adverse variance implies the opposite
<em>Material usage variance</em>
<em>A material usage variance occurs when the standard quantity required to active a particular level of production is higher or lower than than the actual actual quantity used.</em> A favorable variance would mean than less quantity of materials were used than the standard to achieve a given output level. And an adverse variance would mean the opposite
<em>Relationship between Usage variance and Price variance</em>
Where savings are made from purchase of cheap and inferior quality materials these might lead to an adverse usage variance by a greater value .This is so because workers might need to use a larger quantity ( more than the standard required) of a low-quality materials to achieve production.
So a favourable material price variance might be more than offset by an adverse usage variance
Natural monopolies <span>benefit from large economies of scale, in which the costs of goods decrease as output increases.
</span>A natural monopoly<span> is a distinct type of </span>monopoly<span> that may arise when there are extremely high fixed costs of distribution, such as exist when large-scale infrastructure is required to ensure supply.</span>
Well I am glad you figured it out, good for you
Answer:
The answer is: A) A decrease in the price of paper used to make greeting cards.
Explanation:
In normal market conditions, an increase in the equilibrium quantity of greeting cards means that the quantity demanded and the quantity supplied of greetings cards increased. Usually an increase in the quantity supplied will result in an increase of the price of the good or service. But on this specific case something else made the price of the cards decrease. The only one of the four possible options that can explain an external cause for a decrease in the price of greetings cards, is a decrease in the price of paper used to manufacture them.
Answer:
Explanation:
The journal entries are shown below:
a. Inventory A/c Dr $26,000
To Notes payable A/c $26,000
(Being inventory is purchased for signing the short term notes payable)
b. Interest expense A/c Dr $780
Notes payable A/c Dr $26,000
To Cash A/c $ $26,780
(Being cash is paid on maturity)
The interest expense is computed below:
= Principal × rate of interest × number of months ÷ (total number of months in a year)
= $26,000 × 6% × (6 months ÷ 12 months)
= $780
The 6 months is calculated from March 1 to September 1
