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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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Nachman Industries just paid a dividend of D0 = $1.32. Analysts expect the company's dividend to grow by 30% this year, by 10% i

Nuetrik [128]

Answer:

Stock's current market value = $44.87

Explanation:

We can solve this stock valuation problem using DDM (Dividend Discount Model).

Lets find the dividends for the years:

D0 = $1.32

D1 = $1.32*1.3 = $1.716

D2 = $1.716*1.1 = $1.888

D3 = $1.888*1.05 = $1.982

The formula of stock valuation:

$P_n=\frac{D_{n+1}}{k_e-g}$

Lets calculate the terminal value after Year 3 afterwards:

$P_n=\frac{D_{n+1}}{k_e-g}\\P_n=\frac{1.982}{0.09-0.05}\\P_n=49.55$

<u>Note:</u> rate of return, k_e = 0.09 (given) and growth rate (g) is 5% or 0.05

Now,

The present value of the stocks is gotten using formula:

$P_n=\frac{D_{n+1}}{(1+r)^n}+\frac{Terminal}{(1+r)^n}$

So, we have:

$P_0=\frac{1.716}{1.09}+\frac{1.888}{1.09^2}+\frac{49.55}{1.09^2}\\P_0=44.87$

Stock's current market value = $44.87

4 0

3 years ago

traight-line depreciation is a typical example of a: Multiple Choice curvilinear cost. mixed cost. variable cost. fixed cost. st

irina1246 [14]

Answer:

fixed cost.

Explanation:

Straight-line depreciation is a typical example of a fixed cost.

5 0

3 years ago

The following information is provided for Sacks Company. Cash $ 12,000 Supplies 4,500 Prepaid rent 2,000 Salaries expense 4,500

MakcuM [25]

Answer:

The amount of total liabilities is $5,000

Explanation:

In this question, we apply the accounting equation which is shown below:

Total assets = Total liabilities + owner's equity

where,

Total assets = Cash + supplies + prepaid rent + equipment

= $12,000 + $4,500 + $2,000 + $65,000

= $83,500

Owner's equity = common stock + ending retained earning balance

where,

Ending retained earning balance = Beginning retained earning balance + net income - dividend paid

The net income = Service revenue - Miscellaneous expenses - salaries expense

= $30,000 - $20,000 - $4,500

= $5,500

Now put these values to the above formula

So, the ending retained earning balance would equal to

= $8,000 + $5,500 - $3,000

= $10,500

And, the owner equity = $68,000 + $10,500 = $78,500

So, the total liabilities would be

= $83,500 - $78,500

= $5,000

4 0

3 years ago

There is an inverse relationship between bonds' quality ratings and their required rates of return. Thus, the required return is

iragen [17]

Answer:

True

Explanation:

Investors are risk adverse, that means that under normal conditions if they have to choose between two securities that yield the same rate of return, they will always choose the less risky.

That means that riskier securities must yield higher rates of return to compensate for the higher risk.

3 0

4 years ago

Clara, who manages the marketing efforts for Glade air freshener, has just completed researching the marketing expenditures for

BARSIC [14]

Answer:

II Clara is using competitive parity budgeting methods

IV Clara is using objective and task budgeting

Explanation:

Share of voice basically measures your brand's share of total advertising in a market. It is very useful to determine your brand's visibility and helps to develop you company's external competitive analysis. It differs from market share since market share represents the actual share of total market sales that your company has.

In this case, Clara is adjusting her marketing budget to reach the appropriate share of voice for Wizard air freshener. She needs to compare the product's current share of voice with the competition's and the projected marketing expenses for next year.

A high share of voice doesn't necessarily match a high market share, although it helps to increase it.

6 0

4 years ago