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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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In the Month of March, Digby Corporation received orders of 179 units at a price of $15.00 for their product Dart. Digby uses th

Julli [10]

Answer:

$1,800

Explanation:

Revenue is recognized when a firm has transferred the control of goods or services. In March, only the control of 120 units had been transferred, thus the revenue to be recognized on the March income statement from this order is ( 120 units × 120 units) that gives $1,800.

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3 years ago

One guide to choosing a leadership approach uses a series of questions. For example, "Is decision quality highly important?" or

Sauron [17]

Answer: Vroom and Yetton's normative decision model.

Explanation:

The Vroom–Yetton normative decision model is a situational leadership theory of industrial and organizational psychology that was developed by Victor Vroom, in collaboration with Phillip Yetton and later with Arthur Jago. The situational theory argues the best style of leadership is contingent to the situation.

Regarding decision making, the Vroom-Yetton model suggests that being autocratic, seeking advice, considering alternative approaches before a decision is made, informing a group on an issue, and letting that group develop the solution without forcing your own ideas are all important at times.

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4 years ago

On October 1, Lawrence Company borrowed $60,000 from Fourth National Bank on a 1-year, 7% note. If the company's fiscal year end

Olegator [25]

Answer:

Lawrence should make an entry to increase c. interest payable, $1,050

Explanation:

The interest amount Lawrence Company had to pay for the note:

$60,000 x 7% = $4,200

In Lawrence's fiscal year ends on December 31, following 3 months of borrowing the $60,000. Following the Accrual basis, the company should make an adjustment entry to record interest expense with amount:

$4,200/12 x 3 = $1,050

The entry:

Debit Interest expense $1,050

Credit Interest payable $1,050

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4 years ago

Balancing trade is important because if a nation imports more than it exports,

Gala2k [10]

I think its answer B because if they are sending more out then they are producing then it most likely going to decrease

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3 years ago

After spending months finalizing a marketing plan, the lead marketing manager presents it to the entire company. It soon becomes

Sauron [17]

The correct answer is A) alignment.

After spending months finalizing a marketing plan, the lead marketing manager presents it to the entire company. It soon becomes clear that the budget given in the plan is far lower than the marketing team had determined it would need. This mistake is likely a result of a lack of alignment.

This means that the marketing manager did not respect the parameters originally indicated. His numbers did not align with the necessities of the plan, which means that he did not take into consideration some important factors that at the end, affected the end result of the budget.

7 0

3 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.)