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3 years ago

When budgets are used for evaluation, what is the difference between budgeted and actual amounts called?

Business

1 answer:

Evgesh-ka [11]3 years ago

6 0

Answer:

b. Budget variances

Explanation:

The difference between budgeted and actual amount is called as budget variance. Budget variance is useful when we are evaluating the performance of a company, this is done be deducting the budgeted amount from actual amount to see if the performance of a company is favorable or unfavorable

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If a nation has a comparative disadvantage in the production of some commodity: Group of answer choices it cannot gain from inte

vazorg [7]

Answer:

it can still gain from international trade in that commodity, by getting it at a lower opportunity cost than if it produced it domestically.

Explanation:

A country has comparative disadvantage in production if it produces at a higher opportunity cost when compared to other countries.

The country with a comparative disadvantage can gain from trade by trading the good with a country that has comparative advantage in the production of that good. i.e. the country produces at a lower opportunity cost

For example, country A produces 10kg of beans and 5kg of rice. Country B produces 5kg of beans and 10kg of rice.

for country A,

opportunity cost of producing beans = 5/10 = 0.5

opportunity cost of producing rice = 10/5 = 2

for country B,

opportunity cost of producing rice = 5/10 = 0.5

opportunity cost of producing beans = 10/5 = 2

Country B has a comparative disadvantage in the production of beans and country A has a comparative disadvantage in the production of rice

Country B should buy beans from A and A should buy rice from B

7 0

3 years ago

EB2.

madreJ [45]

Answer:

The question is incomplete; the complete question is given below:

Direct materials 15,000.00

Direct labor 25,000.00

Factory depreciation expense 45,000.00

Factory utilities expense 2,000.00

Payroll staff's salary 15,000.00

Prime cost= $40,000, Conversion cost= $72,000

Explanation:

Prime cost: It is the summation of all direct costs. Direct costs are costs that are incurred directly for a particular product, and therefore can be traced to it.

Examples of direct costs include; direct material costs, direct labour cost and direct expense

Direct materials cost: the costs of all materials used directly to manufacture a product. For example, cocoa powder, vanilla used in making chocolate. Every other materials costs are indirect material costs

Direct labor cost: the cost of the labor hours of workers actively involved in the production of a product. For example, the cost of the total hours paid to workers for packing the chocolates into cartons. Every other labor costs are indirect labor costs

Prime cost = Direct material cost+ Direct labour cost + Direct expense

Prime cost = $15,000 + $25,000= $40,000

Conversion cost = The sum of direct labour costs and manufacturing overheads

Conversion cost= $25,000 + $45,000 + $2000= $72,000

Note that payroll staff cost was excluded because payroll function is an administrative activitiy not manufacturing.

6 0

3 years ago

A good example of a ______________ offense is selling alcoholic beverages to a minor

laila [671]

Minor criminal offense, specifically a strict liability offense. Strict liability refers to an offense made regardless of the the intent of action. In other words, even if you have no malicious intent, you are still liable for the offense. Another example is possession of drugs.

4 0

3 years ago

Relevant costs for target costing include:

Firdavs [7]

Answer:

Correct answer is D. All future costs, both variable and fixed

Explanation:

In target costing, all future costs both variable and fixed costs are relevant. This is for us to clearly determine the desired profit that the company wants to attain. The process of costing is to determine all future costs that the company will possibly incur in the production and add it to the desired profit margin to know the unit sales price of the product.

5 0

3 years ago

The internal rate of return is:

shepuryov [24]

Answer:

The correct answer is letter "A": the discount rate that makes the net present value of a project equal to the initial cash.

Explanation:

The Internal Return Rate, or IRR, is a central component of corporate finance capital budgeting. Companies use it to determine which discount rate will make the Present Value of the after tax cash flows equal to zero (0). Any project that returns an IRR greater than 0 ads has a value.

In the decision-making process, IRR is subordinated to Net Present Value because it is preferred an absolute dollar amount that is higher than a higher IRR.

5 0

3 years ago