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3 years ago

List three causes of a favorable direct materials price variance. (Select three possible answers.)

Business

1 answer:

ankoles [38]3 years ago

6 0

Answer:

A, B , and E

Explanation:

A. Budgeted purchase prices were set without careful analysis of the market

Budgets are prepared using estimated prices. As much as possible, the budget prices should be the same as market prices. It may happen that during price estimation, some aspects could have been ignored, leading to incorrect purchase prices. It could be possible that the budget prices are overstated. In such a scenario, there would be a favorable price variance to the business.

B. Materials prices decreased unexpectedly due to industry oversupply

The supply and demand forces determine the prices of raw materials. Low supply will lead to an increase in price as many buyers chase few goods. Constant demand and supply create stable prices. A sudden increase in supply will lead to reduced prices, which will cause favorable variances to the business.

E. The materials purchasing officer negotiated more skillfully than was planned in the budget.

The purchasing manager does the actual buying in any organization. Should the manager be a skilled negotiator, the business stands a better chance of buying goods at low prices. In this case, the purchasing manager negotiated for better prices. The results will be a positive price variance for the company.

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2 years ago

The general relationship between spot and forward exchange rates is specified by a concept called interest rate parity. It speci

elena-s [515]

Answer: -2.55%

Explanation:

The formula to calculate Forward Rate is:

Forward Rate = Spot rate X $\frac{1 + I_{O} }{1 + I_{D} }$

where $I_{O}$ is the Interest rate of the overseas country and

$I_{D}$ is the Interest rate of the domestic country

$0.0052 = 0.005 X $\frac{1 + 0.0135 }{1 + I_{D} }$

$0.0052 X ${1 + I_{D} }$ = 0.005 X 1.0135

$0.0052 X ${1 + I_{D} }$ = 0.0050675

${1 + I_{D} }$ = $\frac{0.0050675}{0.0052}$

${1 + I_{D} }$ = 0.9745 - 1

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The yield on 180-day risk-free securities in the United States is -2.55%

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3 years ago

Examining a company's relationships with other individuals and entities can reveal important information about financial stateme

Andrei [34K]

Answer:

Examining relationships with related parties will show whether there are unusual transactions that significantly improve the company's reported financial performance

Explanation:

Examining related parties, will help to find out if due processes and set standards were followed and applied in company transactions, as the 'significantly improved reported financial performance', may not reveal the true financial performance of the company.

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3 years ago

State 4 factors that will hinder the development of the manufacturing industry

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Answer:

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2 years ago

List three causes of a favorable direct materials price variance. ​(Select three possible​ answers.)

List three causes of a favorable direct materials price variance. (Select three possible answers.)