Answer: $528 favorable
Explanation:
The Spending variance for supplies shoes the difference between what the company thought it would spend on supplies and what it actually spends.
Spending variance on supplies = Actual costs - Budgeted costs
Budgeted cost:
= 968 + 8 * 470 frames
= 968 + 3,760
= $4,728
Spending variance on supplies:
= 4,200 - 4,728
= $528 favorable
<em>Variance is favorable when the Budgeted costs are higher than actual costs. </em>
Answer & Explanation :
Reasons of Bose speakers' & products' goodness
- Excellent Design - Best suitable for major premium 'willing to pay' customers
- Supply - Exceptionally capable suppliers
- Manufacturing - Updated & superior quality technologies, based on intense research & development
High quality products & services outshine in market for following reasons:
- The proportionate higher quality is sold at much higher relative price.
- These goods become 'ostentation' (status symbol) goods, are bought not only for their increased value, but also for prestige.
- Rejection based repair & rework is minimum. This synergises internal processes & increases cost efficiency.
So, high prices & cost efficiency imply - high profitability for such high quality products.
A likely analytical procedure to test the accuracy of purchase discounts would be to compute the ratio of cash discounts earned to : Purchase
<h3>What is Purchase Discount?</h3>
Purchase discount is deducted to the total purchases when computing for the net purchases. This account has a normal balance of credit and decreases the total amount of cost of goods sold.
<h3>What is Analytical procedures ?</h3>
Analytical procedures refer to study of significant ratios and past trends and investigating unusual fluctuations.
Under analytical review procedures, an auditor compares financial information of the current period with those of the previous periods, applying techniques of ratio analysis and investigating the causes of unusual fluctuations and deviations.
Therefore, we can conclude that the correct option is C.
Your question is incomplete, but most probably your full question was:
A likely analytical procedure to test the accuracy of purchase discounts would be to compute the ratio of cash discounts earned to:
a. accounts payable
b. notes payable
c. purchases
d. sales discounts
Learn more about Analytical procedures on:
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Answer:
direct labor cost
Explanation:
Direct cost is an expense that can be directly be attached to a particular item, product, or project. Direct labor cost is the amount of money paid to workers involved in the production of goods in a firm.
The manufacturing process needs workers to operate the machines and equipment, among other duties in the production process. The workers are paid wages or salaries. The cost of compensating the workers is direct labor costs. In other words, direct labor costs are the cost of labor used in the manufacturing process.
Answer:
C : . as beer production increases, the average total cost of production falls.
Explanation:
Economies of scale applies to large firms or firms that employ large volumes of productive resources like land , labor and capital. Due to their financial strength they are able to produce in bulk, hence cost per unit falls.
