Answer:
Possible causes of material quantity variance:
1. The use of sub-standard material
2. The use of unskilled labour
3. Wastage of material
Explanation:
Material quantity variance is the difference between standard quantity and actual quantity used multiplied by standard price. The use of sub-standard material reduces the quality of output thereby resulting to unfavorable material quantity variance. The use of unskilled labour also leads to unfavorable material quantity variance. Wastage of material due to low quality of inputs also results to unfavorable material quantity variance.
Answer:
a) cash flow from operating activities
net income $650,000
adjustments:
depreciation expense $96,000
accounts payable $38,000
accounts receivable -$22,800
inventory -$57,000
prepaid insurance -$8,400
net cash flow from operating activities $695,800
b) cash flow from investing activities
Sale of long term investments $57,500
Purchase of long term assets -$610,000
Long term assets exchanged for common stocks $113,000
net cash flow from investing activities -$439,500
Answer: (C) Ethical climate
Explanation:
The ethical climate is one of the organizational based atmosphere where the company basically focuses on the employees ethical values, laws and the environment that helps in making different types of complex decisions.
The main purpose of the ethical climate in an organization is that it helps in maintaining the values, principle and the moral of the company employees.
According to the given question, the Pi's pizza is one of the restaurant that maintain the ethical climate by follow the various types of ethical policies. Therefore, Option (C) is correct answer.
Answer:
$4,200,000
Explanation:
Given :
Annual interest payment = $20 million
Tax rate = 21%
Cost of debt = 6%
The value of the interest rate tax shield is given by :
The tax rate * annual interest payment
Tax rate = 21% = 21/100 = 0.21
Annual interest payment = $20,000,000
The value of interest rate tax shield = (0.21 * $20,000,000) = $4,200,000
