acid-test ratio

Q: Production-volume variance formula

A: Variance: It implies to a difference between the actual and standard outcomes. If the actual outcome…

Q: Define standard deviation

A: It refers to the variation in the actual observations from the average. Z-Score helps to know how…

Q: Weighted-average unit cost

A: Weighted average unit cost is the per unit cost which is calculated dividing the total value of…

Q: Define acid-test ratio.

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: Pe ratio formula?

A: PE(Price-to-earnings) ratio is used to determine the relative valuation for companies having…

Q: How to determine FLEV and Spread and the noncontrolling intrest ratio.

A: Financial Leverage (FLEV): Financial Leverage is a financial ratio that represents the relationship…

Q: What's the difference between the acid-test ratio and current ratio?

A: The ratio analysis helps to analyse the financial statements of the business.

Q: How is the Equivalence Calculations performed with CompositeCash Flow Elements?

A: The question is based on the concept of the Equivalence Calculations performed with Composite Cash…

Q: The standards for direct materials are made up of which of the following components? a.variance…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: Define sacrificing ratio.

A: Definition of Sacrificing Ratio:Sacrificing ratio is the ratio where the old partner give their…

Q: Change in direct materials cost per equivalent unit

A: The cost per equivalent unit for the material is based on the equivalent units for material and the…

Q: Explain average cost method.

A: Average cost method: Under average cost method inventories are priced at the average of all…

Q: how to compute quantity/efficiency variance

A: Cost accounting is beneficial since it can demonstrate where a corporation spends money, earns…

Q: How does the acid-test ratio differ from the current ratio?How are they similar?

A: Difference: The acid-test ratio and the current ratio are both measures of the short-term debt…

Q: how to do a cost of prodution report

A: The cost of production report is prepared by the following four steps

Q: Define direct material variance.

A: Variance:   Variance refers to the difference level in the actual cost incurred and standard cost.…

Q: Define and describe contribution margin per unit.

A: Contribution margin:   Contribution margin refers to the process or theory that is used to judge the…

Q: What type of testing are ratios?

A: Ratio:   It is a number expressed in terms of another to establish a relationship among them.

Q: differentiate and give illustrations of the difference between FIFO and Weighted Average.

A: Inventory Valuation - There are three method using which company can value their inventory a. FIFO…

Q: differences between Weighted Average and FIFO methods

A: Weighted Average and FIFO methods are used to value inventory of business.

Q: Distinguish between sacrificing ratio and gaining tab.

A: Partnership: This is the form of business entity which is formed by an agreement, owned and managed…

Q: What would the effect of the failure in the ratio measurement?

A: Ratio measurement in terms of financial world depicts that a single accounting figure by itself may…

Q: explain the difference between margin and markup

A: Margin can be defined as the amount that is derived by deducting Cost of goods sold from sales. that…