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drek231 [11]
2 years ago
5

The purpose of preparing a direct materials budget is to ________. multiple choice 1 allocate the cost of raw materials to produ

ction departments estimate the manufacturing overhead estimate the quantity of raw materials to be purchased estimate the unit cost of direct materials to be purchased Knowledge Check 02 In a direct materials budget, the desired ending raw materials inventory for the year is equal to the ________. multiple choice 2 beginning balance of accounts payable desired ending raw materials inventory for the last period total merchandise purchased during the year value of raw material used during the year
Business
1 answer:
Eduardwww [97]2 years ago
3 0

Answer:

1. estimate the quantity of raw materials to be purchased.

2. ending raw materials inventory for the last period.

Explanation:

A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on periodic basis.

The first step of the budgeting process is to prepare a list of each type of income and expense that will be part of the budget.

The final step by the management of an organization in the financial decision making process is making necessary adjustments to the budget.

The benefits of having a budget is that it aids in setting goals, earmarking revenues and resources, measuring outcomes and planning against contingencies.

1. The purpose of preparing a direct materials budget is to estimate the quantity of raw materials to be purchased. This includes the raw materials that would be used for the manufacturing of finished goods.

2. In a direct materials budget, the desired ending raw materials inventory for the year is equal to the ending raw materials inventory for the last period.

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Decentralized decision making refers to a decision making process which started from the group or individuals in high authority and distributed to the rest of the group. The decision that is made with this process tend to be made in order to address the demand of the buyers.

4 0
3 years ago
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Consider an asset with a beta of 1.2, a risk-free rate of 4.4%, and a market return of 12.4%. What is the reward to risk ratio?
charle [14.2K]

Answer: 8%

Explanation:

Reward to risk ratio = (Expected return - Risk free rate) / Beta

Expected return = Risk free rate + Beta * ( Market return - Risk free rate)

= 4.4% + 1.2 * (12.4% - 4.4%)

= 14%

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= 8%

3 0
2 years ago
Suppose that goods x and y are substitutes and the price of good y falls. we would then expect
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expect what?

Please make sure you finish your question, thank you ❤️

6 0
3 years ago
The Missing Link Chain-Link Fence Company is trying to determine how many chain-link fabricating machines to buy for its factory
OleMash [197]

Answer:

Explanation:

What is given:

The price of a new fabricating machine - 60

The price of a one-year-old machine - 51

The real interest rate is 10% per year

Marginal product of fabricating machines 165-2K (K - desired number machines)

If calculate the depreciation, (60-51)/51 = 15%

a) Find user cost of capital

User cost of capital is the sum of interest rate and depreciation cost multiplied by the price of new machine

= 60*(0.10+0.15) = 15 units

b) Determine the number of machines that will allow Missing Link to maximize its profit

165-2K=15

2K = 150

K = 75 machines

c)

Suppose that Missing Link must pay a tax equal to 40% of its gross revenue. What is the optimal number of machines for the company?

165-2K = 15/(1-0.4)

165-2K=14/0.6

165-2K=25

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4 0
3 years ago
Pepe, Incorporated acquired 60% of Devin Company on January 1, 2018. On that date Devin sold equipment to Pepe for $45,000. The
CaHeK987 [17]

Answer: $9000

Explanation:

Based on the values given in the question, the consolidated gain or loss on equipment for 2018 would be calculated as:

Cost of equipment = $120,000

Less accumulated depreciation = $66,000

Less: Amount Devin sold equipment to Pepe = $45,000

Consolidated loss= $120,000 - $66000 - $45000

= $9000

8 0
3 years ago
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