Company XYZ is a merchandising business. The company is specialized in selling a specific brand of smartphones. The purchase cost per unit was OMR320. At the beginning of the month of May the company has inventory of 1,270 smartphones. During the month of May, the company purchased additional 1,000 smartphones. By the end of May, the company had 430 smartphones
Company XYZ is a merchandising business. The company is specialized in selling a specific brand of smartphones. The purchase cost per unit was OMR320. At the beginning of the month of May the company has inventory of 1,270 smartphones. During the month of May, the company purchased additional 1,000 smartphones. By the end of May, the company had 430 smartphones
Chapter1: Financial Statements And Business Decisions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Company XYZ is a merchandising business. The company is specialized in selling a specific brand of smartphones. The purchase cost per unit was OMR320. At the beginning of the month of May the company has inventory of 1,270 smartphones. During the month of May, the company purchased additional 1,000 smartphones. By the end of May, the company had 430 smartphones remaining in the store. The selling and general expenses for the company include wages and commissions, which include fixed monthly payment of OMR1,700 plus a OMR10 per unit sold; and depreciation of OMR2,000 per month. Assuming a selling price per unit of OMR640, calculate the total contribution margin select option a. None of the given answers b. OMR588,800 COMR570.400 d. OMR566,700 e. OMR393,700
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