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3 years ago

Identify the situation below that will result in a favorable variance.

Business

1 answer:

DENIUS [597]3 years ago

5 0

Answer:

d. Actual revenue is higher than budgeted revenue.

Explanation:

When the Actual income/revenue/benefit is higher than the budgeted/estimated income/revenue/benefit, the variance will be favorable.

When the Actual income/revenue/benefit is lower than the budgeted/estimated income/revenue/benefit, the variance will be unfavorable.

When the Actual expense/cost/loss is higher than the budgeted/estimated expense/cost/loss, the variance will be unfavorable.

When the Actual expense/cost/loss is lower than the budgeted/estimated expense/cost/loss, the variance will be favorable.

As the actual cost incurred is higher than the cost estimated, then the variance in both costs is unfavorable.

As the actual Income earned is lower than the income estimated, then the variance in both incomes is unfavorable.

As the actual expense incurred is higher than the expense estimated, then the variance in both expenses is unfavorable.

As the actual revenue incurred is higher than the revenue estimated, then the variance in both revenues is favorable.

As the actual revenue earned is lower than the revenue estimated, then the variance in both revenues is unfavorable.

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Mike is the Director of Human Resources for a 120-employee family-owned manufacturing firm. Mike has been quite busy the last ye

inn [45]

Answer:

A. Assuming that employees would understand the content of the PowerPoint slides

Explanation:

One of the most common mistakes that can be made is assuming that the receiver on the other end of the communication chain would understand quite well, what message, you as the sender, is passing across.

In the scenario cited in the question above, the new benefit offerings that have been developed after the overhauling, of which Mike has taken his time to explain in a power point presentation just few months before employees would be required to enroll for the program, must have been misunderstand by the employees. The multiple emails reveals that the employees do not really understand the content, and this comes as a surprised to Mike. We can infer that Mike must have made the mistake of assuming that the employees would understand the content of the PowerPoint slides.

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3 years ago

Luxury Swiss chalet hotel general manager reported to her owner that the hotels occupancy index for calendar year 2019 was 1.25.

Alex

Answer:

the Swiss Chalet had higher occupancy than its competitive set in 2019

7 0

3 years ago

Which is a reason a person might decide not to purchase insurance

Dominik [7]

They have no record of crashing

5 0

3 years ago

Read 2 more answers

Alma is interested in receiving income to help save money for her grandson’s college education. She is considering investing in

sergij07 [2.7K]

Answer:

D. the company does not have a legal obligation to pay dividends when promised.

Explanation:

Dividends are share of income distributed by the company to shareholders when the company performs good, and earns profit.

But since it is a distribution of income and not a mandatory payment, there might be chances that company do not pay dividends, and might retain the income earned for future growth prospects.

Thus, in order to earn money fast although the company promises to make dividend payments, but it shall be taken care, that the company will necessarily pay dividends.

6 0

4 years ago

On July 1, 2014, Dillman Kennels sells equipment for $66,000. The equipment originally cost $180,000, had an estimated 5-year li

vodomira [7]

Answer:

(D) $6,000 gain; (C) $60,000 loss on disposal

Explanation:

In the first question,

Original cost = $180,000

Estimated useful life = 5 years

Expected salvage value = $30,000

Therefore, annual deprecation = (180,000-30,000)/5 = 150,000/5 = $30,000.

With an accumulated depreciation of $105,000 on January 1, 2014 and a sale of the equipment on July 1, 2014, we need to add to the accumulated depreciation the depreciation for the six month period from January 1 to July 1 to determine the accumulated depreciation up to the point of sale.

6 month depreciation = 1 year depreciation/2 = 30,000/2 = 15,000

Therefore, accumulated depreciation up to the point of sale = 105,000 + 15,000 = 120,000.

Therefore, net book value (NBV) at time of sale = original cost - accumulated depreciation

= 180,000 - 120,000 = 60,000.

Thus, given a sale value of 66,000, there gain/(loss) on sale = sale value - NBV = 66,000 - 60,000 = 6,000 gain.

In the Second Question,

Original cost = $225,000

Sale value = $75,000

Accumulated depreciation = $90,000 (up to the point of sale).

Therefore, NBV at the point of sale = original cost - accumulated depreciation = 225,000 - 90,000 = 135,000.

Thus, profit/(loss) on disposal = sale value - NBV = 75,000 - 135,000 = -60,000 = 60,000 loss on disposal.

4 0

3 years ago