Prior to closing, Bill is free to withdraw, but doing so will result in the loss of his earnest money deposit.
When is the advance payment deposit typically applied on a settlements statement at closing?Earnest money is often delivered at the time when the sales contract or purchase agreement is signed, although it can also be included with the offer. After being received, the money is normally kept in an escrow account until closing, when it is used to cover the buyer's down payment and closing expenses.
How can a buyer determine how much cash to bring to the closing?The main technique for determining your cash to close is quite straightforward. The majority of what you need to close on a mortgage is your down payment plus your closing expenses, less any seller credits or earnest money you've already paid.
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in general, game theory is the study of question 1 options: oligopolistic markets. how people behave when the possible actions of other people are irrelevant. how people behave in strategic situations. all types of markets, including competitive markets, monopolistic markets, and oligopolistic markets.
C. In general, game theory is the study of how people behave in strategic situations.
Game theory is the study of mathematical representations of rational agents interacting strategically. It is applicable to all areas of social science, including computer science, logic, systems science, and others. Two-player zero-sum games, in which each player's earnings or losses are precisely balanced by those of the other players, were the subject of the study's initial attention.
Game theory is based on this concept, which uses the game as a model of an interaction scenario with rational individuals. Game theory's central tenet is that each player's outcome is influenced by the other's strategy.
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the local pizza delivery industry currently has a herfindahl-hirschman index (hhi) value of 999 and two of the competing pizza shops have considered merging. because the merger would raise the hhi by 55 points, the federal trade commission would likely
option a- is the partially correct option because if the premerger HHI is 999 that means there is a high concentration of the industries, it will be more concentrated if the HHI value increase in post-merger.
An industry in macroeconomics is a division of an economic that generates a connected group of products, services, or raw resources. One may cite the wood business or the insurance industries as examples.
Industry classifications often use a company's or group's major source of revenue when evaluating it to place it inside a certain industry. For instance, "statistical units" are categorized by the "economic activity in which they primarily participate" according to the International Standard Industrial Classification (ISIC), which is utilized directly or through derivations for the official statistics of the majority of countries worldwide. The next definition of industry is "a set of statistical units that are grouped into the same ISIC category." A single company does not have to be a part of a single industry, though.
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united graphics is surveying its various publics in order to assess its current image. tyler, who has worked at the company for two years, receives the survey. which type of public is tyler?
Tyler pays its workers $400 for each hour of work.Technologies Tyler We offer solutions to control every stage of the life cycle of property taxes. Tyler developed integrated software solutions for tax billing and collections, computer-assisted mass appraisal (CAMA), and assessment administration functionality.
A financial event that has already happened and may be included in the financial statement of an organization is called an accounting transaction.
In this instance, a financial transaction can be seen in the claim that "Tyler pays its employees $400 for work done" because it has already taken place.
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high-contact encounters between customers and service organizations differ sharply from low-contact encounters. True or False
High-contact encounters between customers and service organizations differ sharply from low-contact encounters is true.
What is high-contact encounters?
High-contact service is providing your clients with a lot of direct assistance, whereas low-contact service entails providing them with the resources to solve their own problems. The actual question is which strategy will work best for you and your clients as they are both viable possibilities.
High-touch means providing individualized care and attention. The phrase is frequently used in corporate contexts when it is important for customers and employed person(s) to feel trusted.
However, high-contact customer service investigates issues raised by clients to find solutions. If you own a software business, you might, for instance, evaluate client issues to come up with simple fixes for the next time the same thing happens to a customer.
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what impact does a bargain purchase option have on the present value of the minimum lease payments computed by the lessee (for purposes of a lease classification test)?
Since the option does not become a part of the transaction until the conclusion of the lease period, there is no effect.
What is a lease?An asset—in this case, property—owned by another party is to be rented by one party on the terms set forth in a lease. In exchange, it assures the lessor (the property owner or landlord) of regular payments for a predetermined period while guaranteeing the lessee, also known as the tenant, the use of the property.
If either party violates the contract's terms, the lessee and lessor are both subject to penalties. The incorporeal right is known as a lease.
What advantages do leases offer to both tenants and landlords?
Signing a lease lays out the relationship and the rental agreement in explicit terms for both landlords and tenants. It also details the duties and rights of each party.
For instance, leases give both parties structure because they outline the rental price and the permissible lease term. Both parties benefit from this stability. The consequences of either party disobeying or breaking any of the terms of the lease are also made clear for both parties by the lease.
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bad debt expense . (check all that apply.) multiple select question. should exceed the revenue generated from incurring the cost is based on actual events and does not require estimation is an estimate is a cost of extending credit to customers
The Bad debt expense is the way businesses account for a receivable account that will not be paid is based on actual events and does not require estimation.
The Bad debt expense is used to reflect receivables that a company will be unable to collect. This entails a credit to the Accounts Receivable for the amount that is written off and a debit to the bad debts expense account.
The Bad debt is a loss that a company incurs when credit that has been extended to customers becomes worthless, either because the debtor is bankrupt, has financial problems or because it cannot be collected.
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Answer:
A
Explanation:
which of the following businesses would most likely have the longest operating cycle? multiple choice a chain of coffee shops a national sporting goods chain an antiques dealer a christmas tree farm
The Christmas tree farm has the longest operating cycle which cover almost more than one year.
The operating cycle is the typical amount of time required for a firm to buy its initial capital to buy raw materials, produce products, sell those products, and then get payment from the customer for those products. This really is helpful for determining how much working capital a business will require to maintain up with or grow its operations.
As a consequence of having a very short operating cycle, a company can continue to expand while retaining very low profits. Conversely, if a company's operating cycle is unusually long, it may have healthy margins yet just need additional funding to grow even slowly.
The complete question is here:
Which of the following businesses would most likely have the longest operating cycle?
A. A chain of coffee shops.
B. A national sporting goods chain.
C. An antiques dealer.
D. A Christmas tree farm.
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allison everhart, an employee in accounts payable, believes she can run a fictitious invoice through the accounts payable system and collect the money. she knows payments are subject to an audit. which account would be the best place to hide the fraud?
Consulting service expense accounts would be the best place to hide the fraud.
Accounting usually referred to as accounts, is the measurement, processing, and communication of financial and non-financial data regarding economic entities like firms and corporations. Accounting sometimes referred to as the "language of business," measures the outcomes of an organization's economic actions and disseminates this data to numerous stakeholders, including investors, creditors, management, and regulators. Accountants are those who work in the accounting field. Frequently used interchangeably are the words "accounting" and "financial reporting."
Financial accounting, management accounting, tax accounting, and cost accounting are some of the subfields of accounting that can be split.
An organization's financial information is reported to external users of the information through financial accounting, which includes the creation of financial statements.
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during the financial crisis of 2008-2009, banks worldwide experienced losses driven by their portfolios of
Banks worldwide experienced losses during the financial crisis of 2008-2009 which was driven by their portfolios of real estate loans with the failed bank.
During the financial crisis, the real estate sector experienced a severe and heavy downturn. This crisis started in the United States, back then Reserves Bank decreased the interest rate to sustain price stability which resulted in increasing the demand for housing loans at such low-interest rates. In 2006, Due to an increase in interest by reserve banks, many subprime mortgage borrowers suffered, and as a result, they stopped paying the installments leading to a decrement in the CDO (Collateralized debt obligation) values. This crisis hit real estate badly due to which inflation took place which is called as Great Recession.
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simon established a startup. he wanted to secure a domain name and have a website to market and sell his products. in this regard, which of the following should be the first step?
The first step towards securing domain name is acquire trademarks and copyrights in order to protect against piracy and to develop license agreements.
A recognizable phrase, word, emblem, or symbol that identifies a particular product and legally distinguishes it from other commodities of its sort is referred to as a trademark. A trademark acknowledges the firm's possession of a brand and solely distinguishes a commodity as being its own. Generally speaking, trademarks are viewed as a type of intellectual property, irrespective of whether they are registered.
The legal authority of the owner of the intellectual property is alluded to as copyright. The freedom to copy seems to be the fundamental definition of copyright. The only individuals with the sole right to reproduce a work are the original authors of the that work and anybody to whom they give permission.
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A complaint about bureaucracies is the ________ often involved in dealing with them.
A complaint about bureaucracies is the red tape often involved in dealing with them.
The term "red tape" refers to laws, adherence to formal norms or standards that are perceived as being excessive, stiff, or redundant, as well as to bureaucracy that is thought to impede or inhibit activity or decision-making. Governments, businesses, and other significant organizations are typically subject to it. Filling out paperwork, getting permits, getting approval from several persons or committees, and other minor regulations that slow down or make it more difficult to conduct business are examples of things that are frequently referred to as "red tape." A related concept, administrative burden, describes the costs citizens may incur in their interaction with government, even if bureaucratic regulations or procedures serve legitimate purposes. Meta-analytic studies in 2020 found that red tape hinders organizational performance and employee wellbeing.
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When are Cyber Monday sales?
Cyber Monday sales occur on the last Monday of November. In 2022, it will be on 28 November 2022.
Cyber Monday can be described as a sales day in November where huge discounts are offered by brands on their products.
Although, this type of sale does not target higher priced products such as Apple a massive discount can be seen on products such as clothes, electronic appliances, etc.
Cyber Monday occurs on the last Monday for the month of November each year. People wait for Cyber Monday each year to avail of discounts.
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a price floor (support price) set above equilibrium: group of answer choices is a minimum legal price set by government above equilibrium. causes the quantity supplied to exceed the quantity demanded. creates a surplus. can represent the effect of a minimum wage. all of these.
When a base is about on top of the equilibrium price, the amount equipped can exceed the amount demanded, and excess offers or surpluses can result.
Once government laws regulate costs rather than rental economic processes verify costs, it's referred to as control. A base may be a price floor where a product or service is allowed to sell. Several agricultural merchandises have value floors obligatory by the govt. The foremost necessary example of a base is earnings. A value ceiling may be the most value that may be charged for a product or service.
A floor price must be higher than the equilibrium price to be effective.
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Answer:all of these
Explanation:
the answer is "all of these"
You are planning an upcoming trip to namibia for a service project. The research on facial expressions and emotion would suggest you should.
You're getting ready to go to Namibia on a humanitarian mission. You should "resume that you are reading the Namibians' facial expressions appropriately," according to research on facial expressions and mood.
The Universal Language of Facial Expression
Paul Ekman asserted that people can consistently infer emotional states from facial expressions all throughout the world, demonstrating the universality of emotional displays. Considering that facial expressions are a universal language that anyone, regardless of origin or language, can understand, the ideal response, according to this research, is to make sure that you are accurately interpreting Namibians.
Facial expressions like smiles and frowns can be used to communicate when others are speaking languages they are unable to understand. Without a question, facial expressions remain the most fundamental way that people communicate with one another. This is because everyone immediately knows the simple universal language of facial emotions.
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at the marriage of her daughter, lorna is given papers to sign, which the catering company says are the invoices for the food, service, and decorations. underneath the invoices is a contract of sale obligating lorna to buy the failing catering company for a price equal to ten times the value of the company. lorna signs all the papers including the contract of sale, thinking all the documents are invoices for the wedding.
The wedding ceremony planner invoice is a consignment that details a service price and provides an amount of time in which price should be sent.
This invoice is given to consumers after formally asking for the planner's knowledge regarding wedding ceremony preparation.
What is consignment with example?An consignment is an itemized commercial file that records the products or offerings delivered to the customer, the complete quantity due, and the favored payment method. The vendor can send both paper or electronic invoices to the customer.
Does invoice suggest paid?An bill is a demand for price (delivered both electronically or physically) that is sent with the aid of the vendor after the sale of goods/services has been completed, however earlier than price has been made. In essence, invoices are used to make certain that your business receives paid.
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https://brainly.com/question/24086159#SPJ4mary owns a trucking company that hauls goods all over the country. wilson contracts with marcy's company to transport ten tractor-trailer loads of goods from ohio to texas. marcy has reason to believe the goods are stolen, but never asks wilson about it. the court would likely determine the contract:
Due to Marcy's company's justifiable ignorance of the fact that the products were stolen then court would probably rule that the agreement is binding.
What do you mean contracts?A contract is an agreement between parties that establishes legal duties for both parties. The fundamental components necessary for the agreement to be a valid offer and acceptance, adequate consideration, capacity, and legality are mutual assent, expressed through a contract-compliant offer,
How do contracts work?A legal agreement between two or more parties that outlines the steps they will or can't really take is known as a contract. A contract, which is enforceable by law, binds both parties to its terms and may outline what would happen if they are broken. Not all agreements are in writing.
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all of the following are techniques that may be used to conceal a receivables skimming scheme except . a. lapping b. force balancing c. stolen statements d. inventory write-offs
Lapping is the act of crediting one account with funds taken from another account. Because the fraudster will utilize a client's payment to hide a payment that has been taken from another customer, it is used to conceal receivables skimming.
The technique of applying cash receipts to another customer's account in an effort to hide earlier thefts of cash receipts is best defined as lapping.
Lapping is a prohibited practice that transfers funds from one customer's account to another customer's account.
Lapping typically happens in smaller companies where one person oversees payment receipts and customer billing.
Businesses can prevent and detect overcharging by dividing the duties of the cashier and the biller as well as by performing routine checks of payment receipts.
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Rather than carrying 15 brands of laundry detergent, ________ offer one or two brands and sizes, one of which is a store brand.
Rather than carrying 15 brands of laundry detergent, limited-assortment supermarkets offer one or two brands and sizes, one of which is a store brand.
What are limited - assortment supermarkets?Limited-assortment supermarkets are supermarkets that do not stock up on too many different brands of a particular product. They store only one or two brands in a few sizes to reduce the needs to make a difficult decision for consumers that come to their supermarkets and can't pick out a product because there are so many of them.
One of the product offered on display to consumers at limited-assortment supermarkets is often a store brand. This provides the limited-assortment supermarkets with an alternative source of income because they are not able to offer too many products. It is also worthy of note that limited-assortment supermarkets will often stock off - brand products. This makes such supermarkets cheaper than regular ones.
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what was the status of US workplace safety laws in 1900?
Most states had handed a few protection laws, however enforcement varied.
The required details for Safety Law in given paragraph
Safety Law manner any federal, state, local or overseas law, statute, ordinance, rule, regulation, order, decree, judgment, injunction, permit, license, authorization or other binding requirement, or not law, pertaining to meals protection and quality, including all through the growing, packing, storage, handling or transportation phases.
When the Secretary of State determines that the proprietor of a car has now no longer paid a civil penalty or a agreement settlement bobbing up from the violation of regulations followed below the Illinois Motor Carrier Safety Law or the Illinois Hazardous Materials Transportation Act or that a car, irrespective of ownership, became the situation of violations of those regulations that led to a civil penalty or agreement settlement which stays unpaid.
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The following are internal controls related to various cycles.
1. Sales invoices are matched with shipping documents by the computer system and an exception report is generated.
2. Receiving reports are prenumbered and accounted for on a daily basis.
3. Sales invoices are independently verified before being sent to customers.
4. Payments by check are received in the mail by the receptionist, who lists the checks and restrictively endorses them.
5. Labor hours for payroll are reviewed for reasonableness by the computer system.
6. Checks are signed by the company president, who compares the checks with the underlying supporting documents.
7. Unmatched shipping documents are accounted for on a daily basis.
8. The computer system verifies that all payroll payments have a valid employee identification number assigned by the human resources department at the time of hiring.
9. The accounts receivable master file is reconciled to the general ledger on a monthly basis.
1. Sales invoices are matched with shipping documents by the computer system and an exception report is generated.
Specific control activity: Adequate documents and records
Transaction-related management assertion: Occurrence
Explanation: An exception report is generated to match sales invoice with shipping documents by the computer system to ensure adequate documentation and records
2. Receiving reports are prenumbered and accounted for on a daily basis.
Specific control activity: Adequate documents and records
Transaction-related management assertion: Completeness and Timing
Explanation: On a daily basis reports are recorded to checks completeness and timing
3. Sales invoices are independently verified before being sent to customers.
Specific control activity: Independent check on performance
Transaction-related management assertion: Accuracy
Explanation: Independent check on performance of the sales invoices before being sent to customers to ensure accuracy
4. Payments by check are received in the mail by the receptionist, who lists the checks and restrictively endorses them.
Specific control activity: Separation of duties
Transaction-related management assertion: Completeness
Explanation: Separation of duties to ensure completeness of assigned tasks
5. Labor hours for payroll are reviewed for reasonableness by the computer system.
Specific control activity: Proper authorization of transaction related activities
Transaction-related management assertion: Accuracy/Occurrence
Explanation: Proper authorization of transaction related activities to ensure accurance and occurence of the transactions
6. Checks are signed by the company president, who compares the checks with the underlying supporting documents.
Specific control activity: Independent checks on performance; Separation of duties
Transaction-related management assertion: Accuracy/Occurrence
Explanation: Independent checks on performance with the related documents to ensure accuracy and occurrence of the transactions
7. Unmatched shipping documents are accounted for on a daily basis.
Specific control activity: Physical control over documents and records
Transaction-related management assertion: Timing/ Completeness
Explanation: Physical control over documentation and records to check unmatched shipping documents on a daily routine to ensure completeness and it's timings
8. The computer system verifies that all payroll payments have a valid employee identification number assigned by the human resources department at the time of hiring.
Specific control activity: Adequate separation of duties
Transaction-related management assertion: Occurrence
Explanation: Adequate separation of duties on the payroll payments to ensure occurrence
9. The accounts receivable master file is reconciled to the general ledger on a monthly basis.
Specific control activity: Independent checks on performance
Transaction-related management assertion: Posting & summarization
Explanation: Independent checks on performance of accounts receivable master file reconcillation with general ledger to ensure it's postings and summarization
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a 500 kva distribution transformer costs rs 50,000 and has a useful life of 20 years. if the salvage value is rs 5,000 and annual compound interest rate is 8%, determine the value of the transformer at the end of 10 years using sinking fund method.
the value of the transformer at the end of 10 years using sinking fund method is 35760
Intial cost of the plant ,P=Rs 50,000
salvage value of the plant,S=Rs 5,000
(i) By Straight line Method .Annual deposit to be made,
q=[tex]\frac{P-S}{n}[/tex]=50000-5000/20=Rs 2250
Despreciated value of the plant at the end of 10 years
=p-q×10=50000-2250×10
=Rs 27500
Sinking fund method,rate of interest,r=8%=0.08
Annual deposit in the sinking Fund,
q=(P-S)[[tex]\frac{r}{(1+r)^{n}-1 }[/tex]]
=(50000-5000)×0.08/[tex](1+0.08)^{20} -1[/tex]
=Rs 983
Total amount collect at end of the 10 year
=[tex]q(1+r)^{10} -1/r[/tex]
=[tex]983(1+0.08)^{10} -1/0.08[/tex]
=14240
Depreciated value of the plant at the end of 10 years
=Rs 50000-14240
=Rs 35760
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is government spending better measured as a percentage of gdp or in nominal dollars
Our econometric models predict that, over the long term, the United States Government Spending To GDP will be roughly 38.40 percent of GDP in 2023.
What percentage of the GDP is a result of government spending?Our econometric models predict that, over the long term, the United States Government Spending To GDP will be roughly 38.40 percent of GDP in 2023. The ability of a government to service debt through taxation depends on the size of the economy, as determined by GDP.The debt-to-GDP ratio rather than the debt's monetary amount is a better indicator of a country's debt burden. Federal, state, and municipal governments spend money on products and services through government purchases.One of the most important factors in calculating a country's gross domestic product is the sum of all of this spending, minus transfer payments and interest on the debt (GDP). The President then approves the budget proposed by Congress.Congress determines the kind and quantity of mandatory spending as well as the amount of discretionary spending each year.Federal borrowing and tax revenue are the main sources of funding for spending.To learn more about GDP refer
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if sellers produce less than the equilibrium quantity, the marginal benefit to buyers the marginal cost to sellers, so when producers increase their production, they the economic surplus.
If sellers produce less than the equilibrium quantity, the marginal benefit to buyers is higher than the marginal cost to sellers, so when producers increase their production, they decrease the economic surplus.
Producer surplus is the difference between what a person would accept for a specific quantity of a good and what they could make by selling the good at the going rate. The producer benefits from selling the good on the market when there is a difference or surplus amount.
When market prices are higher than the lowest price producers would otherwise be willing to accept for their goods, a producer surplus is created. This could be relevant to Walras' law.
The total economic gain from taking part in the production and trade of the good is represented by the sum of the producer surplus and consumer surplus.
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With fewer managers and more people in positions without managerial accountability, which building block will you rely upon to ensure jobs are properly supervised?.
A constructing block of making sure that jobs are nicely monitored is the coordination of interest among jobs.
The required details for in given paragraph
What are the additives of an organizational shape?
Organizational shape refers back to the set of factors that may be used to compose an organization. There are six simple constructing blocks that administrators can use to construct their organization: Designing jobs, grouping jobs, organizing reporting relationships among jobs, dispensing authority among jobs, coordinating sports among jobs, and distinguishing jobs. The 3 layout factors of organizational shape: Functions, Locations, Permissions may be used to keep away from not pitfalls and layout new systems that suit your commercial enterprise section and strategy.
What does it suggest to construct accountability?
Accountability approach displaying up and commencing to acquire what you stated you'll do. It's approximately taking non-public obligation in your work. It additionally approach trusting your teammates and understanding that you may depend on every different to get matters done.
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Which term describes an investment approach intended to minimize risk and maximize returns?
Advantage
Diversification
Installment
Liquidity
Diversification is the term that describes an approach intended to minimize risk and maximize returns
What is Diversification?
Portfolio diversification is the process of allocating your money in a variety of securities and asset classes in order to reduce the portfolio's overall risk.
The main goal of portfolio diversity is to reduce investment risk, particularly unsystematic risk.
How to Diversify your Investments?
Investigate more investing optionsThink about bond or index funds.Maintain Your PortfolioRecognize When to ExitPay attention to commissionsDisadvantages of Diversification
Complicated tax lawsInvestments may be challenging due to the risk of investing in Unproven assets.Complications in handling too many InvestmentsTo know more about Diversification refer
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alex has $18 per week in his entertainment budget. he splits his time between going to the movies and renting video games. each movie costs $6 while each video game rental costs $3. the measured total utility of each of his activities is shown in the table below. what is alex's utility maximizing point?
Alex's utility maximizing point is A. 1 movie and 4 video game rentals.
What is Utility maximization?Utility maximization is the idea that individuals and organizations want to get the most out of their economic decisions. The utility function assesses the degree to which an individual's fulfillment is met.
When Alex is going to 1 movie and rents 4 video games, he is having the total utility of 136(40+96) and he is spending total given money also.
In this case, he can spend on 5 movies and 7 video game rentals as he has limited amount of money ($18).
It should be noted that in 0 movie and 6 video game rentals, his TU is 114.
In 2 movies and 2 video game rentals his TU is 130(75+55)
The correct option is A.
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What is the largest source of money for most candidates campaigns?
The most prevalent way to support a campaign is through contributions.
What is advertising campaign?Anything of value given, borrowed, or advanced to influence a federal election is considered a donation.The objective of an advertising campaign is inform, persuade, or remind customers.Advertising is any paid form of non personal promotion of good and services. Advertising campaign helps promote and increase sales of a firm.When businesses advertise their products, they tend to create awareness by bringing such products closer to consumers.Therefore, the objective of advertising campaign is to inform, persuade or remind customers.Direct mail solicitation, efforts to persuade supporters to donate online, direct requests from the candidate, events held specifically for fundraising, and other strategies are all examples of ways to raise money.Therefore,The most prevalent way to support a campaign is through contributions.
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BMM Industries pays a dividend of $2.50 per quarter. The dividend yield on its stock is reported at 5.30%. What is the stock price?
BMM Industries pays a dividend of $2.50 per quarter. The dividend yield on its stock is reported at 5.30%. The stock price will be $ 188.68.
The price at which a share of stock is currently trading on the market is referred to as the stock price. When shares of a publicly traded firm are issued, their value is assigned a price that, ideally, represents the worth of the company itself. A stock's price will fluctuate in response to a variety of circumstances, such as shifts in the overall economy, shifts in specific industries, political developments, armed conflict, and environmental changes.
When a firm initially releases its shares on the market, its initial public offering (IPO) is what first determines stock prices. The price of a stock is determined by investment firms using a range of measures including the total number of shares being offered.
Dividend yield = (Quarterly dividend x 4) / Price
5.30% = ($ 2.50 x 4) / Price
Price = $ 10 / 5.30%
Price = $ 188.68
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As described in the ten axioms for success, what issue is considered as being vital to promote trust as project managers from the perspective of know your team?.
Project managers need to motivate people to make wise decisions and share a common vision.
What are the works of Project managers?Planning and project management are managers' primary responsibilities. conforming to predefined reporting structures while leveraging any delegation and project assurance roles. Plans for the project, the stage, and the exception should be made and updated as necessary. Developing back-up plans is part of controlling project risks.
Project management is the practice of overseeing a team's activity to fulfill all project objectives within the predetermined constraints. The project documentation that is made at the start of the development process typically include explanations of these data. The three main ones are those related to scope, time, and budget.
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a company's flexible budget for 50,000 units of production showed variable overhead costs of $80,000 and fixed overhead costs of $66,000. the company incurred overhead costs of $131,980 while operating at a volume of 42,000 units. the total controllable cost variance is:
The total controllable cost variance of company having incurred overhead costs of $131,980 for 42,000 units is -$9,200.
How to calculate cost variance ?The process of analysing your project's financial performance is called cost variance. Cost variance compares the amount that was allocated for the project in your budget with what was actually spent. This is calculated by finding the difference between BCWP (Budgeted Cost of Work Performed) and ACWP (Actual Cost of Work Performed).
Computation of variance
Flexible Budget Units 50,000 units
Total variable costs at budget level $80,000
Variable costs per unit = $80,000/ 50,000 = $1.6 per unit
Actual Production Units 42,000 units
Total overhead costs
Variable $ 1.6 * 42,000 units = $ 67,200
Fixed overhead costs $66,000
Total Budgeted overhead costs at 42,000 units $ 124,000
Actual Overhead costs $133,200
Variance Favorable is -$9,200
The total controllable cost variance is -$9,200
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