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3 years ago

A(n)______ variance occurs when management pays an amount different from the standard price to acquire the item.

Business

1 answer:

fenix001 [56]3 years ago

3 0

Answer:

The answer is "Spending".

Explanation:

A(n) variance in spending happens whenever management spends a quantity other than the standard cost of the products to be acquired.

The difference in expenditure is the gap between the real level as well as the expected amount (or budget) of spending. Overhead costs often include fixed costs, e.g. operating expenses.

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Sloan Transmissions, Inc., has the following estimates for its new gear assembly project: price = $2,900 per unit; variable cost

Sloan [31]

Answer:

in its best case scenario:

selling price = $2,900 + 15% = $3,335 per unit

variable costs = $580 - 15% = $493 per unit

fixed costs = $5.2 million - 15% = $4.42 million

quantity = 88,000 + 15% = 101,200 units

estimated profits in best case scenario = $337,502,000 - $49,891,600 - $4,420,000 = $283,190,400

in its worst case scenario:

selling price = $2,900 - 15% = $2,465 per unit

variable costs = $580 + 15% = $667 per unit

fixed costs = $5.2 million + 15% = $5.98 million

quantity = 88,000 - 15% = 74,800 units

estimated profits in best case scenario = $184,382,000 - $49,891,600 - $5,980,000 = $128,510,400

The firm is still profitable because the contribution margin is huge even in the worst case scenario. In he best case scenario the break even point is 1,556 units, while the break even point in the worst case scenario is 3,326 units. It's a very low break even point considering total expected sales.

5 0

3 years ago

Prince Company acquires Duchess, Inc. on January 1, 2016. At the date of acquisition, Duchess has long-term debt with a fair val

vlabodo [156]

Answer:

Debit Interest Expense and Credit Long-term Debt Expense.

Explanation:

When Price is acquiring the Duchess Incorporation, it is agreeing upon everything that the Duchess is liable to pay and and receive from any other party. Duchess has a long term debt with a fair value of $1500000, which needs to be paid by the acquiring company now i.e. Prince. Hence, the interest expense would be paid and the long-term debt expense would be decreased by the same amount.

Therefore, for that the entries would be as follows:

Debit Credit

Interest Expense $xxx

Long-term debt expense $xxx

5 0

4 years ago

funds are created when individuals or organizations contribute resourcesto a trust with the agreement that principal and/or inco

Eva8 [605]

Funds are created when individuals or organizations contribute resources to trust with the agreement that principal and/or income will be used to benefit individuals or private organizations in a Private-Purpose trust.

A funding fund is a manner of investing money among different traders so one can enjoy the inherent benefits of operating as part of a group such as decreasing the dangers of the funding by a massive percentage.

A fund is a pool of money set apart for a particular reason. The pool of cash in a fund is frequently invested and professionally controlled which will generate returns for its traders. A few not unusual styles of price range include pension budget, coverage funds, foundations, and endowments.

The primary assets of investment are retained profits, debt capital, and fairness capital. Groups use retained earnings from enterprise operations to amplify or distribute dividends to their shareholders. Corporations increase the budget by means of borrowing debt privately from a bank or via going public (issuing debt securities).

Learn more about Funds here brainly.com/question/25887038

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8 0

1 year ago

Suppose that the salary range for recent college graduates with a bachelor's degree in economics is $30,000 to $50,000, with 25

igor_vitrenko [27]

Answer:

The Expected Earning for the college graduates is 40,000

Explanation:

The Expected Earning for a college alum with a four year college education in financial matters is determined as weighted normal all things considered, utilizing likelihood of every result as its weight.

Although the Expected Earning is;

Expected Earning = (25% × 30,000) + (50% × 40,000) + (25% × 50,000)

Expected Earning = 0.25 × 30,000 + 0.5 × 40,000 + 0.25 × 50,000

Expected Earning = 7500 + 20,000 + 12,500

Expected Earning = 40,000

7 0

3 years ago

Suppose that people in France decide to permanently increase their savings rate.Predict what will happen to the French bond mark

Elenna [48]

Answer:

The answer is: C) There will be an increase in wealth, creating a shift to the right in the demand curve for bonds in France. France can therefore expect permanent lower interest rates in the future.

Explanation:

When the residents of a nation decide to permanently increase their savings, that affects the economy in several ways. At first, it will lower the total demand for products and services (to be able to save money you must spend less) and increase the quantity demanded for bonds. This increase will lower the price (in this case interest rate) of bonds.

When the interest rates of bonds is lower, it means the cost of borrowing money for the general population will also lower. The interest rate commercial banks charge their clients always follow the interest rate of bonds. That will lead to greater investment and spending in the economy, and future economic growth.

6 0

3 years ago