The AB/C ratio is The alternative that should be selected is the retention pond

Q: Strategic and tactical asset allocation.  Define and explain the difference between these and the…

A: Strategic asset allocation is defined as making efficient portfolios of assets with a long-term…

Q: How is a gain contingency reported?

A: Gain contingencies: The excess of book value over the amount to be received is actually gain…

Q: Describe the margin of safety.

A:

Q: two terminal valuation methods used in DCF valuations, and give the formulas for each.

A: Terminal value is the value of an asset, a business, or a project beyond the expected period when…

Q: Define Restoration costs.

A: Restoration means the act of renewing or repairing something.

Q: Describe the Project selection rules under the IRR criterion?

A: IRR (Internal rate of return) is one of capital budgeting techniques which is used to evaluate the…

Q: Define Depletion.

A:

Q: What approaches might be used to decide the sequence in which to allocate support departments when…

A: Different approaches can be used to decide the sequence to allocate support department while using…

Q: Explain the term internal failure costs.

A: Internal failure costs: Internal failure costs include additional production-related costs that are…

Q: Under what conditions are the results from using the direct method of allocation the same as those…

A: Allocation of Cost = Cost allocation is a Cost accounting Process in which organisation identify the…

Q: Define Pledging.

A: When we talk about pledging in terms of accounting, it is to be noted that the word pledging is…

Q: Define the term avoidable cost.

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Explain an example how to calculate margin of safety.

A: The margin of Safety: The break-even point reflects the level of sales volume where no profit or…

Q: a range in which the relationship between the cost and its driver is still valid is call

A: Solution: A range in which the relationship between the cost and its driver is still valid is called…

Q: Explain the difference between a controllable and a noncontrollable cost.

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: What is important for a MACRS to consider at the time of disposal?

A: MACRS stands for Modified Accelerated Cost Recovery System. These are the regulations of…

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.