Ruby Company produces a chair for which the standard specifies 7 yards of material per unit. The standard price of one yard of material is $14.60. During the month, 6,700 chairs were manufactured, using 47,800 yards at a cost of $15.33 per yard. Determine the following: Enter favorable variances as negative numbers. a. Direct materials price variance b. Direct materials quantity variance c. Total direct materials cost variance 000

Q: Information produced using fair value as the measurement base is considered:   I. More neutral.…

A: Answer:- Fair value method meaning:- When a buyer and a seller voluntarily agree on a price for an…

Q: Q2: “Goodwill cannot be said to depreciate”. Explain the statement.

A: Accounting's goals include keeping a systematic record of all financial transactions in a book of…

Q: When is the material quantity unfavorable? A.When the actual quantity used is less than the…

A: Material quantity variance =(AQ-SQ)×SP Where as,  AQ = actual quantity used SQ = standard or…

Q: Describe the approaches for measurement of fair value.

A: When measuring fair value of fixed assets, intangible assets, specified financial assets or…

Q: Any cost that is avoidable is relevant for decision purposes. O A. True O B. False

A: Relevant costs are those costs that are affected by the specific management decision being…

Q: The adverse opinion indicates that the statements are not presented fairly or are materially…

A: The work of an auditor is to issue audit report in which they provide their opinions on the…

Q: Explain THREE problems associated with the reliability and measurement of fair values.

A: Introduction: Fair value reporting is a difficult financial reporting standard because financial…

Q: What must occur if a Significant Deficiency is identified?

A: Definition:   Internal control: Internal control is a process which ensures continuous reliability…

Q: increase

A: In finance, the agency problem refers to a conflict of interest between the management of the…

Q: Use examples to discuss the differences between adverse selection issues and moral hazard problems.

A: The objective of this question is to understand the differences between adverse selection and moral…

Q: How fair value measurement?

A: Fair Value In Accounting term Fair Value means the recognition of amount which are actually value…

Q: QUESTION 1 Which of the following is not a behaviour bias? a. Prospect theory b. Conservatism C.…

A: Analysis of the given options: a) Prospect theory    ANALYSIS- Prospect theory finds application in…

Q: Which measure(s) of materiality consider(s) quantitative considerations? Planning Yes Yes No No A.…

A: The measure of materiality indicates the evaluation of the benchmark in the form of a standard…

Q: True (t) or False (f) ______ The historical cost principle would be of limited usefulness if not…

A: Historical cost principle says that all assets and liabilities of business should be recorded at…

Q: g balance method of C

A: The formula of declining balance method as, Depreciation per annum as, = (Net Book Value - Residual…

Q: Is funding a type of risk?

A: Funding means providing the funds to the party and charging interest rates from them. Firms need…

Q: How does accounting for permanent differences less complex than is accounting for temporary…

A: Temporary Difference:   A temporary difference is the difference of an income recognized under the…

Q: Unmodified opinion refers to ______

A: In general audit option can be of two major types . They are  a) Unmodified b) Modified Opinion…

Q: How does/can a financial intermediary reduce the risk facing them due to Adverse Selection?

A: The question is based on one of the key issue in financial market, banking industry,  about the…

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.