We depreciate assets over their useful lives instead of just expending them in the year they were acquired because let's say, when we exhaust a 5 year asset in a year, the 1st year is understated because the whole expense of the asset has been fully utilized in just 1 year, while the remaining 4 years are overstated,
To solve this problem, we should recall the
spending variance is expressed as:
Spending variance = Actual results - Flexible budget
Where,
Spending variance = $ 2,261 Unfavorable
Actual results = $ 31,178
Flexible
budget = 11,900 X
X represents the cost
formula per machine-hour for indirect materials. Substituting the values to the
equation:
2,261 = 31,178
- 11,900 X
- 11,900 X = - 28,917
<span>
</span>
<span>X = $ 2.43 (ANSWER)</span>
Diminishing marginal product of labor causes the average variable cost curve to option A: rise.
Since the marginal product for each extra worker is rising, total variable costs rise as production rises but at a decreasing pace. The overall variable cost increases at a rising rate as the marginal product declines. This will consequently cause the average variable cost curve to rise.
When advantageous modifications are made to input variables that affect overall production, marginal productivity often decreases.
The productivity obtained from each additional unit produced once a factor of production is enhanced will only minimally increase from one unit to the next, according to the law of diminishing marginal productivity.
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Answer: d. a lower yield
Explanation:
When a security is said to bring back predictable returns it means the security is of lower risk. A CMO tranche that has the most predictable near-term principal pay off is therefore the one with the a lower risk.
Riskier securities command higher yield than less riskier ones as a way to compensate the holder for taking on more risk. With tranche A having the lower risk, it will have a lower yield.
Answer:
The present value of $1,500 paid in three years is $1259.54
Explanation:
A = P(1 + r/100)^n
where
:
A is the future value
P is the present value
r is the rate of interest
n is the time period.
1500 = P*(1.05)*(1.06)*(1.07)
P = 1500/1.19091
= $1259.54
Therefore, The present value of $1,500 paid in three years is $1259.54