All categories

3 years ago

Matching terms [10 min]

Business

1 answer:

vovikov84 [41]3 years ago

7 0

Answer: See explanation

Explanation:

1. Flexible budget

A flexible budget is referred to as a budget that adjusts with the changes in volume.

2. Static budget

This is the budget that's prepared for just one sales volume level.

3. Variance

The difference between an actual amount and the budget is referred to as the variance.

4. Flexible budget variance

Flexible budget variance is the difference between the actual results that are gotten and the results that are gotten through the flexible budget model.

5. Sales volume variance

This is the difference between the actual units that are sold and the expected number of units that are sold, which is then multiplied by budgeted price per unit.

You might be interested in

Suppose the Canadian government is unwilling to wait for the long-run adjustment process. The marginal propensity to consume is

timofeeve [1]

Given:

Marginal propensity to consume (MPC) = 0.8

Equilibrium real output = $500 billion

Full-employment output = $540 billion

Find:

Change in government spending ΔG = ?

Computation:

Change in output ΔY = Full-employment output - Equilibrium real output

Change in output ΔY = $540 billion - $500 billion

Change in output ΔY = $40 billion

Change in output ΔY = [1 / (1 - MPC)] × ΔG

$40 billion = [1 / (1 - 0.8)] × ΔG

$40 billion = [1 / (0.2)] × ΔG

$40 billion = [5] × ΔG

ΔG = $40 billion / 5

ΔG = $8 billion

Change in government spending ΔG = $8 billion.

8 0

4 years ago

The law Örm of Saul Goodman and Associates must choose between two di§erent leases for their new space. The Örst lease, Lease A,

nataly862011 [7]

Answer:

I believe that this problem is about determining the equivalent annual cost of leasing option A:

lease cost year 1 = $36.25/sf

lease cost year 1 = $37.25/sf

lease cost year 1 = $38.25/sf

lease cost year 1 = $39.25/sf

lease cost year 1 = $40.25/sf

there are two ways to calculate this solution and the answer will vary significantly depending on which assumption you take:

a) lease payments are paid at the beginning of the year

the PV = $36.25 + $37.25/1.06 + $38.25/1.06² + $39.25/1.06³ +$40.25/1.06⁴ = $170.27

equivalent annual cost = ($170.27 x 6%) / [1 − (1 + 6%)⁻⁵ ] = $10.2162 / 0.2527 = $40.42/sf

b) lease payments are paid at the end of the year

the PV = $36.25/1.06 + $37.25/1.06² + $38.25/1.06³ + $39.25/1.06⁴ +$40.25/1.06⁵ = $160.63

equivalent annual cost = ($160.63 x 6%) / [1 − (1 + 6%)⁻⁵ ] = $9.6378 / 0.2527 = $38.13/sf

5 0

3 years ago

The Sugar Sweet Company will choose from two companies to transport its sugar to market. The first company charges $3995 to rent

notsponge [240]

For Q1, you have to set these equations equal to each other because it is asking how much of x is necessary to make the same amount of y, so:

3995 + 225.50x = 6500 + 100.25x

solve for x:, and get x=20

so 20 tons of sugar will give the companies the same cost.

For Q2: you need to plug in x=20 into either one of the original equations, and solve for y because this will give you the cost of transportation, so:

y= 3995 + 225.50(20)

y=$8,505 for the total cost

7 0

4 years ago

Good Investments Company forecasts a $2.44 dividend for 2017, $2.62 dividend for 2018 and a $2.77 dividend for 2019 for Mountain

Ivan

Answer:

c.$29.37

Explanation:

First and foremost, it should be borne in mind that the intrinsic value of Mountain Vacations Corporation is the present value of its future dividends for the forecast period(2017-2019) plus the present value of dividend terminal value beyond the forecast period as shown thus:

Year 1 (2017) dividend $2.44

Year 2 (2018) dividend $2.62

Year 3 (2019) dividend $2.77

the terminal value of dividend=expected dividend per year after 2019/ cost of equity capital

expected dividend per year after 2019= $2.94

cost of equity capital =7%

terminal value=$2.94 /7%=$42.00

PV of future dividend=dividend/(1+cost of equity capital)^n

n is the year in which the future dividend is expected, it is 1 for 2017, 2 for 2018 , 3 for 2019 dividend and the terminal value(since the terminal value is already stated in 2019 terms)

intrinsic value of share=$2.44/(1+7%)^1+$2.62/(1+7%)^2+$2.77/(1+7%)^3+$42.00/(1+7%)^3

the intrinsic value of share=$41.11

It is obvious that the options are not correct

The question's inputs are wrong

2017 dividend should have been $1.74

2018 dividend should have been $1.87

2019 dividend should have been $1.98

dividend beyond 2019 should have been $2.10

terminal value=$2.10/7%=$30.00

intrinsic value of share=$1.74/(1+7%)^1+$1.87/(1+7%)^2+$1.98/(1+7%)^3+$30.00/(1+7%)^3

intrinsic value of share=$29.36(closest to c.$29.37)

6 0

3 years ago

Calvin enjoys dining at Dawson's, a fast food restaurant. He feels that they make the best french-fries for a low price. However

emmasim [6.3K]

Answer:

The correct answer is: B. Cross-Shopping.

Explanation:

Cross-selling is a technique that consists of selling several complementary products or services to the customer that you wish to buy recently. Cross selling can be understood much more easily with an example: a user buys a computer and the seller offers a mouse and a printer.

3 0

3 years ago