Tel Co's quick ratio is 0.49. If they sell half of their inve
New quick ratio = $37,400/($35,410 + $40,500 - $17,500) = 0.64...
A company manufactures a single product L, for which the stan
Since inventories are valued at standard cost, the material price variance is based on the materials purchased. ...
Which of the following would help to explain a favourable dir
Statement (i) is not consistent with a favourable labour efficiency variance. Employees of a lower skill level are likely to work less efficiently, res...
A company's annual profits have a trend line given by Y = 20t
In 20X9, t = 9y = 20t - 10 y = (20 x 9) - 10 y = 180 - 10 = 170a Forecast profits for 20X9 = 170 - 30 = 140=$140,000...
Discuss one potential problem that might be experienced as a
The use of ROI as a performance measure might lead to dysfunctional behaviour by divisional managers. They might be tempted to avoid investing capital ...
What was the actual usage of direct material during February?
Since there was no change in inventories, the usage variance can be used to calculate the material usage.Saving in material used compared with standard...
What is the value of the closing work in progress on 30 Novem
Using the data from answer 7 above, extend step 3 to calculate the value of the work in progress. Cost Number...
A company manufactures a carbonated drink, which is sold in 1
Required liquid input = 1 litre x 100 = 1.25 litres...
A manufacturing company operates a standard absorption costin
Standard fixed overhead absorption rate per hour = $125,000/25,000 = $5 per hourFixed overhead volume capacity varianceBudgeted hours of work ...