Differential analysis is a common method used when making which decisions?a. long-term capital project decisions
b. short-term business decisions
c. sunk cost decisions
d. long-term business decisions

Answers

Answer 1

Answer:

Answer:

b. short-term business decisions.

Explanation:

Differential analysis can be defined as a management accounting approach which typically involves measuring and analyzing the changes in costs, revenues and benefits that would be gotten from an alternative business decision or course of action.

Differential analysis is a common method used when making short-term business decisions in order to determine which is the most cost-effective. Some of the short-term business decisions are accepting or declining orders, setting selling or cost price for products, keeping or dropping customers, product lines, etc.

Related Questions

IF COUNTRIES FIND WAYS OF IMPROVING THEIR FACTOR OF PRODUCTIVITY
Alexis Co. reported the following information for May: Part A Units sold 5,000 units Selling price per unit $ 800 Variable manufacturing cost per unit 520 Sales commission per unit - Part A 80 What is the manufacturing margin for Part A? $1,000,000 $1,400,000 $3,600,000 $2,600,000
Two different forecasting techniques (F1 and F2) were used to forecast demand for cases of bottled water. Actual demand and the two sets of forecasts are as follows: PREDICTED DEMAND Period Demand F1 F2 1 68 63 66 2 75 70 67 3 70 75 70 4 74 69 72 5 69 70 73 6 72 68 75 7 80 70 77 8 78 74 84 Required:Compute MAD for each set of forecasts. Given your results, which forecast appears to be more accurate
Mars Inc. has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company received the PB0 report from the actuary. The following information was included in the report: ending PBO, $110,000 benefits paid to retirees. $10,000, interest cost, $7,200. The discount rate applied by the actuary was 8%. What was the beginning PBO? A) $100,000 B) $112,000. C) $90,000. D) $107,200.
1. The real risk-free rate (r*) is 2.80% and is expected to remain constant into the future. Inflation is expected to be 6.80% per year for each of the next two years and 5.60% thereafter.The maturity risk premium (MRP) is determined from the formula: 0.10 x (t – 1)%, where t is the security’s maturity. The liquidity premium (LP) on all National Transmissions Corp.’s bonds is 1.20%. The following table shows the current relationship between bond ratings and default risk premiums (DRP):RatingDefault Risk PremiumU.S. Treasury —AAA 0.60%AA 0.80%A 1.05%BBB 1.45%National Transmissions Corp. issues thirteen-year, AA-rated bonds. What is the yield on one of these bonds? (Hint: Disregard cross-product terms; that is, if averaging is required, use an arithmetic average.)10.58%11.78%6.00%2. Based on your understanding of the determinants of interest rates, if everything else remains the same, which of the following will be true?A) The yield on a AAA-rated bond will be lower than the yield on a AA-rated bond.B) The yield on a AAA-rated bond will be higher than the yield on a BB-rated bond.

Which of the following elements is exclusive to the services marketing mix, and not the traditional marketing mix?a) processb) productc) priced) placee) promotion

Answers

Answer:

a) process

Explanation:

The P's are Product, Pricing, Place, Promotion, People, Process and Physical Evidence and for Traditional Marketing is Product, Pricing, Place and Promotion

In an examination of purchasing patterns of shoppers, a sample of 16 shoppers revealed that they spent, on average, $54 per hour of shopping. Based on previous years, the population standard deviation is thought to be $21 per hour of shopping. Assuming that the amount spent per hour of shopping is normally distributed, find a 90% confidence interval for the mean amount.a. [$51.8409, $56.1591]
b. [$52.3174, $55.6826]
c. [$45.3637, $62.6363]
d. [$47.2695, $60.7305]

Answers

Answer:

The 90% confidence interval is c) $45.3637, $62.6363

Explanation:

Hi, since we need to find the Z value from the standard deviation table that would substract an equal area from both size of the normal distribution graph, we can tell that the probability that we have to rate into account is 5% (I mean, 10%, which we substract from both sides 5%), and the Z number for a probability of 5% is -1.645 which is the lower end of the interval, and due to symmetry, the higher end of the interval would be 1.645.

Now, we need to use the following formula in order to find the lower and higher ends of the interval.

$0.9C.L=Mean+1.645((StdDev)/(√(n) ))$

Where:

C.L = Confidence Level

Mean = in our case, $54

StdDev = $21

n = sample sizes, in our case, that would be 16

So, the lower level would be

$0.9C.L=54-1.645((21)/(√(16) ))$

$L.End=45.36375$

Therefore:

$0.9C.L=54+1.645((21)/(√(16) ))$

$H.End=62.63625$

So, the interval in order to have 90% confidence is c. [$45.3637, $62.6363]

Each of the following quality control policies and procedures is typical of ones that can be found in public accounting firms’ systems of quality control. Identify each of them with one of the six elements of quality control identified by SQCS 8. Assign management responsibilities in such a manner that commercial considerations do not override the quality of work performed. Establish policies and procedures for resolving differences of opinion among firm personnel that arise during professional engagements. Develop policies and procedures to ensure that professionals are provided appropriate professional development opportunities. Review engagement documentation, reports, and the client’s financial statements. Develop effective performance evaluation, compensation, and advancement procedures. Identify circumstances and relationships that create threats to independence and take appropriate action to eliminate those threats or reduce them to an acceptable level. Identify whether the firm possesses the competency, capability, and resources to appropriately serve a specific client. Devote sufficient resources to develop, communicate, and support the firm’s quality control procedures. Retain engagement documentation for a sufficient period of time to satisfy the needs of the firm, professional standards, laws, and regulations.

Answers

Answer:

Quality Control Policies and Procedures and the Elements of Quality (SQCS 8):

1. Assign management responsibilities in such a manner that commercial considerations do not override the quality of work performed.

d. Human resources

2. Establish policies and procedures for resolving differences of opinion among firm personnel that arise during professional engagements.

a. Leadership responsibilities for quality within the firm (the tone at the top)

3. Develop policies and procedures to ensure that professionals are provided appropriate professional development opportunities.

d. Human resources

4. Review engagement documentation, reports, and the client’s financial statements.

f. Monitoring

5. Develop effective performance evaluation, compensation, and advancement procedures. Identify circumstances and relationships that create threats to independence and take appropriate action to eliminate those threats or reduce them to an acceptable level.

b. Relevant ethical requirements

6. Identify whether the firm possesses the competency, capability, and resources to appropriately serve a specific client.

c. Acceptance and continuance of client relationships and specific engagements

7. Devote sufficient resources to develop, communicate, and support the firm’s quality control procedures.

d. Human resources

8. Retain engagement documentation for a sufficient period of time to satisfy the needs of the firm, professional standards, laws, and regulations.

e. Engagement performance

Explanation:

According to SQCS 8, the firm must establish and maintain a system of quality control. The six elements of the system of quality control are:

a. Leadership responsibilities for quality within the firm (the tone at the top)

b. Relevant ethical requirements

c. Acceptance and continuance of client relationships and specific engagements

d. Human resources

e. Engagement performance

f. Monitoring

Final answer:

The quality control policies and procedures in public accounting firms are categorized into six elements identified by SQCS 8. Reviewing engagement documentation and the client's financial statements is under the element of monitoring.

Explanation:

Review engagement documentation, reports, and the client's financial statements falls under the element of monitoring in the quality control policies and procedures. This involves performing internal reviews to ensure the accuracy of the work and compliance with professional standards. Developing performance evaluation and compensation procedures falls under the human resources element. Identifying threats to independence and addressing them is part of the independence and ethical requirements element.

Develop effective performance evaluation, compensation, and advancement procedures is related to the element of human resources. This includes establishing fair and objective processes for evaluating staff performance and providing appropriate rewards.

Identifying circumstances and relationships that create threats to independence and taking appropriate action is part of the element of independence and ethical requirements. This involves assessing potential conflicts of interest and ensuring that professional judgment is not compromised.

Learn more about Quality Control Policies and Procedures here:

brainly.com/question/32661621

#SPJ3

Mullee Corporation produces a single product and has the following cost structure: Number of units produced each year 7,000 Variable costs per unit: Direct materials $ 51 Direct labor $ 12 Variable manufacturing overhead $ 2 Variable selling and administrative expense $ 5 Fixed costs per year: Fixed manufacturing overhead $441,000 Fixed selling and administrative expense $112,000 The absorption costing unit product cost is:________a. $65 per unit
b. $128 per unit
c. $63 per unit
d. $149 per unit

Answers

Answer:

unitary absorption production cost= $128

Explanation:

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

First, we need to calculate the unitary fixed manufacturing overhead:

Unitary fixed overhead= 441,000 / 7,000= $63

Now, the unitary absorption production cost:

unitary absorption production cost= 51 + 12 + 2 + 63

unitary absorption production cost= $128

Question 2 Pluto has $100 to spend and his preferences are represented by the quasi-linear utility function U (2,m) = 10x-1/2x^2+m where x is the amount of pizza he eats and m is the amount of money he spends on other stuff. (a) What is Pluto's demand curve for pizza? (b) How much consumer surplus does Pluto get when the price of pizza is $5? Illustrate the calculation of consumer surplus with a diagram. (b) What is Pluto's utility if the price of pizza is $5? (c) Suppose that Pluto is uanble to purchase pizza. What is his utility? What is the gain in utility when he has the opportunity to buy pizza at a price of $5?

Answers

Answer:

(a) see curve on attachment

(bi) consumer surplus= $4

(bii) see diagram on attachment

(biii) utility = 2

(ci) u(0,1) = 1

Explanation:

On Mar 3, L. Lyons withdrew $100 for personal use. Use your knowledge of what a correct journal entry should look like to identify what would be included.

Answers

Answer:

L. Lyons Company

Correct Journal Entry

Debit L.Lyons, Drawings $100

Credit Cash $100

To record the cash withdrawn by L. Lyons for personal use.

Explanation:

When the owner, L. Lyons, withdraws cash for personal use, it reduces the owner's equity interest in the business. Cash as an asset is also reduced by the same amount. Therefore, the double entry should be a debit to the Owner's Capital account (here represented by Drawings) and a credit to the Cash account.

Final answer:

L. Lyons withdrawal of $100 would be treated as an owner's draw, reflecting a decrease in the company's assets. A journal entry would debit the owner's draw account and credit the cash/bank account.

Explanation:

When L. Lyons withdrew $100 for personal use, this would have been treated as an owner's draw and should be reflected in the financial records of the business. A correct journal entry would involve debiting the owner's draw account and crediting the cash or bank account. Why? The money is going out of the business (hence a decrease in the company's assets), and it's going towards the owner, so it's an owner's draw. So, the journal entry would look as follows:

Debit: Owner's Draw $100
Credit: Cash/Bank $100