Is the concentration ratio an accurate measure of the extent of competition?

Global Company makes a product that is expected to use 2.2 pounds of material per unit of product. The material has a standard c

avanturin [10]

Answer:

Favorable for price and unfavorable for usage.

Explanation:

Provided Information,

Standard Material = 2.2 pounds per unit

Standard cost = $2 per pound

Actual Quantity = 2.3 pounds per unit

Actual cost = $1.95 per pound

In Material Price variance we have = (Standard Price - Actual Price) $\times$ Actual Quantity

Since Standard Price $2 is more than actual price = $1.95 the variance is favorable.

In material quantity variance we have = (Standard Quantity - Actual Quantity) $\times$ Standard Rate

Since actual quantity used = 2.3 pounds is more than standard 2.2 pounds the variance will be unfavorable

Therefore, Price Variance = Favorable, and Quantity Variance = Unfavorable.

7 0

4 years ago

On January 1, Year 1, Raven Limo Service, Inc. paid $64,000 cash to purchase a limousine. The limo was expected to have a six ye

MAXImum [283]

Assuming Raven uses straight-line depreciation, the Company would recognize a $2,000 gain.

<h3>What is straight-line depreciation?</h3>

The simplest way to determine depreciation over time is through straight-line depreciation. According to this strategy, an asset's value is reduced by the same amount for each year that it is in use.

<h3>Depreciation formula:</h3>

(Depreciation expense per year = (Cost of the asset - Salvage value) ÷ Useful life.

The given data is -

The cost of asses is given as $64,000.

The salvage value is given as $10,000.

The sole price is $30,000.

Calculation for the depreciation-

Depreciation expense per year = ($64,000 Cost - $10,000 Salvage) ÷ (6 Year life)

Depreciation expense per year = $9,000

Accumulated depreciation on January 1, Year 5 = ($9,000 per year) × (4 years)

Accumulated depreciation on January 1, Year 5 = $36,000.

Book value = $64,000 Cost - $36,000 Accumulated depreciation

= $28,000

Gain on sale = $30,000 Sales price - $28,000 Book value

= $2,000)

Therefore, the gain on the scale is $2,000.

To know more about calculation for annual depreciation using the straight-line depreciation method, here

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4 0

2 years ago

Kendra has a difficult project due for her chemistry class next week. What time-wasting activity should she make sure she does n

GuDViN [60]

Procrastinating
Procrastination is the avoidance of doing a task which needs to be accomplished. It is the practice of doing more pleasurable things in place of less pleasurable ones, or carrying out less urgent tasks instead of more urgent ones, thus putting off impending tasks to a later time.

3 0

3 years ago

Phillip owns a large real estate firm. He imparts training to the managers of the firm to help them effectively manage its multi

Flauer [41]

Answer:

A. skills-based diversity training

Explanation:

Based on the information provided within the question it seems that Phillip is using skill based diversity training in this scenario. This refers to a training approach that focuses on dealing with diversity in multiethnic workforces and providing the necessary skills to solve various types of problems within them. Which is exactly what is happening in this situation.

4 0

3 years ago

Sheridan Company sells its product for $7100 per unit. Variable costs per unit are: manufacturing, $4400, and selling and admini

Minchanka [31]

Answer:

Sheridan Company

Income Statement

For the year ended December 31, 202x

Sales revenue $170,400

Cost of goods sold <u>($129,600)</u>

Gross profit $40,800

Period costs <u>($24,000)</u>

Operating income $16,800

cost of goods manufactured 2019 (or 2020, it is the same)= (20 x $4,500) + $18,000 = $108,000 / 20 = $5,400 per unit

COGS 2020 = 24 x $5,400 = $129,600

sales revenue = 24 x $7,100 = $170,400

4 0

3 years ago

Is the concentration ratio an accurate measure of the extent of​ competition?

Is the concentration ratio an accurate measure of the extent of competition?