Answer / Explanation:
First, we need to understand what variance analysis is. Variance analysis is the qualitative and quantitative measure of the difference between actual financial value and the budgeted financial value.
This helps us to properly monitor our rate of spending against our profit or loss margin. it also assist in proper fund management.
Now talking about how the company will utilize variance analysis, the company will utilize variance analysis in the aspect of fixed over head spending. In the sense that it will be used to measure manpower productivity against overhead spending. This will help us to proper affirm if the rate of manpower productivity equal fixed overhead spending. In the case where fixed overhead spending is more than man hour productivity ratio, then the company will be running at a loss. This is basically a way of measuring productivity performance of man power and also assets.
Answer: 60%
Explanation:
Find the ending work in process.
Materials are complete at inception so the Equivalent units of Materials represent the total units.
Ending WIP will therefore be:
= Materials EUP - Units started and completed
= 5,000 - 3,500
= 1,500 units
Stage of completion is based on Conversion.
Conversion EUP = Total started and completed + (x% * Closing WIP)
4,400 = 3,500 + (x% * 1,500)
4,400 = 3,500 + 15x
15x = 4,400 - 3,500
15x = 900
x = 900/15
x = 60%
<em>Conversion is 60% complete so this is the stage of completion. </em>
Answer:
1) You should go home and watch TV.
Explanation:
Since you value seeing the play $10, then you should leave the theater and go to your house to watch TV since that has a higher value for you ($12).
We are talking about opportunity costs here. Opportunity costs are the extra costs or benefits lost from choosing one activity or investment over another. In this case the opportunity costs are:
- watch the play = $10
- watch TV = $12
- read a book = $8
Since watching TV is more valuable to you, then that is what you should be doing.
Answer:
A) interest rate
Explanation:
Interest rate risk refers to the risk of purchasing a bond that offers a certain coupon and then the price of that bond changes due to changes in the market interest rate.
This can work in your favor, if the market interest rate decreases, you will have a bond that pays above market coupon, which will increase the market value of the bond. But if the market interest rate increases, the market value of your bond will decrease, and you will lose money. This is what happened to Albert, since the market interest rate increased, the value of Albert's bond decreased.
