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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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Elmo Johnson was late on his property tax payment to the county. He owed $7,500 and paid the tax four months late. The county ch

GrogVix [38]

Answer: $250

Explanation:

From the question, we are told that Elmo Johnson was late on his property tax payment to the county and that he owed $7,500 and paid the tax four months late.

We are further told that the county charges an annual penalty of 10%. The amount of the penalty for the four-month period goes thus:

Annual penalty = 10% × $7500

= 0.1 × $7500

= $750

Since he is four months late and there are twelve months in a year, this will be:

= $750 × 4/12

= $750 × 1/3

= $750/3

= $250

8 0

2 years ago

Cameroon Corp. manufactures and sells electric staplers for $17.00 each. If 10,000 units were sold in December, and management f

Monica [59]

Answer:

d. Sales in Dollars February = $180353

Explanation:

The new Sales or the sales budgeted for January will be 3% higher than that for December. If December sales were of 10000 units, then the January sales will be of 10000 * 103% = 10300 units.

The budgeted sales for February will be 103% of January sales.

Budgeted sales- Feb = 10300 * 103% = 10609 units

The selling price is assumed to stay constant at $17 per stapler.

Sales in Dollar-February = 10609 * 17 = $180353

6 0

3 years ago

One of the widely acknowledged problems with using the consumer price index as a measure of the cost of living is that the CPI a

Margarita [4]

A widely acknowledged problem with using the consumer price index as a measure of the cost of living is that it fails to account for the introduction of new goods.

More about consumer price index and its problem-

A more accurate indicator of a nation's standard of living than per capita GDP is the consumer price index or CPI.
It is based on the total cost of a fixed basket of goods and services purchased by an average customer in comparison to the cost of the same basket in a base year.
The CPI can get a precise assessment of the cost of living by including a wide range of thousands of items and services with the set basket.
It's crucial to keep in mind that the CPI is an index number or a percentage change from the base year rather than a monetary value like the GDP.
Because CPI is based on a fixed basket of products, the CPI does not provide an entirely accurate measure of the cost of living, despite being a convenient approach to calculate the cost of living and the relative price level over time.
The bias against substitution, the introduction of new products, and quality variations are three issues with the CPI that should be mentioned.

To learn more about the consumer price index, refer to-

brainly.com/question/9531727

#SPJ4

7 0

2 years ago

__________ unemployment results when the demand for labor varies during the year.

kodGreya [7K]

Answer: Seasonal Unemployment.

Explanation:

Seasonal unemployment refers to the unemployment which occurs when people are suffering from unemployment during the year, this is because of the lower demand for labor than it was usually.

Their are some examples where seasonal unemployment could be a big problem such as tourist areas where work is available for a few months in a year. So, tourist compensate for the remaining months in which work is not available from saving extra in a peak tourist season.

8 0

3 years ago

TP sells franchises in the Old Fast Food chain. TP sells a franchise to Choi for $100,000 by cashier's check. Choi then hears th

Korvikt [17]

Answer:

a.the court will find that the third party is a holder in due course and, despite the fact that TP has defrauded Choi, not require the third party to repay Choi

Explanation:

In the event where TP who sold a franchise to Choi decides to go out of business and transfers everything to a third. In a lawsuit the court will find that the third party is a holder in due course and, despite the fact that TP has defrauded Choi, not require the third party to repay Choi.

6 0

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.)