Erwin Co. provided the following information for a selected production factor: Budgeted production 10,500 units Actual production 9,600 units Budgeted input 10,000 gallons Actual input 10,000 gallons The actual partial operational productivity ratio of the production factor is: (Round to 2 significant digits.) Multiple Choice 0.86 unit per gallon. 1.05 units per gallon. 0.95 unit per gallon. 0.94 unit per gallon. 0.96 unit per gallon.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Erwin Co. provided the following information for a selected production factor:
| Budgeted production | 10,500 | units | |
| Actual production | 9,600 | units | |
| Budgeted input | 10,000 | gallons | |
| Actual input | 10,000 | gallons | |
The actual partial operational productivity ratio of the production factor is: (Round to 2 significant digits.)
-
0.86 unit per gallon.
-
1.05 units per gallon.
-
0.95 unit per gallon.
-
0.94 unit per gallon.
-
0.96 unit per gallon.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
