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Thepotemich [5.8K]
3 years ago
12

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:

<u>A. Budgeted purchase prices were set without careful analysis of the market</u>

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.

<u />

<u>B. Materials prices decreased unexpectedly due to industry oversupply</u>

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.

<u>E. The materials purchasing officer negotiated more skillfully than was planned in the budget.</u>

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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Price and Output data over a five year period for an economy that produces only one good. Assume that year 2 is the base year. Y
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Answer:

$90

Explanation:

Nominal GDP is GDP calculated using current year prices.

Nominal GDP = current year prices x unit of output

18 x $5 = $90

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

7 0
3 years ago
Lacey Company prepared the tabulation below at December 31, 2022. Net Income $310,000
valentinak56 [21]

Answer:

Net cash provided by operating activities is $325,000.

Explanation:

Lacey Company

Cash Flow Statement (Operating Activities Only)

December 31, 2022.

<u>Details                                                                       Amount ($)</u>

Net Income                                                                   310,000

Depreciation expense                                                  45,000

Increase in accounts receivable                                 (55,000)

Decrease in inventory                                                   12,000

Increase in accounts payable                                        6,000

Increase in prepaid expenses                                      (4,000)

Decrease in income taxes payable                               3,500

Gain on disposal of land                                                <u> 7,500 </u>

Net cash provided (used) by operating activities  <u> 325,000 </u>

5 0
3 years ago
During autumn​ months, passenger railroads across the globe deal with a condition called slippery rail. It results from a combin
Dafna11 [192]

Answer:

A) This is an example of a fixed cost because the cost​ doesn't vary with the number of trains.

Explanation:

A fixed cost is a cost that does not vary as the total output varies. In this case, the number of trains using the tracks would be the total output, and the tracks need to bee cleaned regardless of how many trains will use them. Since the costs do not vary depending on the number of trains that will use the tracks, it is considered a fixed cost.

3 0
2 years ago
Select the two terms that are incorrectly formatted per the USGBC trademark policy:
Vedmedyk [2.9K]

Answer:

b. US Green Building Council

c. LEED GA

Explanation:

U.S Green building council is a non profit organization that are formed to promote sustainability within the built environment and has been releasing versions of the LEED rating systems since 2000.  USGBC trademark policy are created to help our brand assets more consistently and correctly. Here, brand assets include trademark and logos. They look into every details of logo and trademark, like placement of mark, which text, intention of use, etc.

4 0
3 years ago
he 12-month period that ends when a company's activities are at their lowest point is called the:(A) Fiscal year.(B) Calendar ye
Nostrana [21]

Answer:

C) Natural business year.

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For example, a school district will have a natural business year of July 1 through June 30, since classes for the school year end in early June.

4 0
3 years ago
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