The income statement of GMA Company for the years ended December 31, 2020 and 2021 showed the following data. 2020 2021 Net Sales 800,000 924,000 Cost of Sales 480,000 501,600 Gross Margin 320,000 422,400 180,000 140,000 Operating expenses 220,000 202,400 Net income Additional Data: Units sold 80,000 88,000 Unit selling price 10.00 10.50 Unit cost 6.00 5.70

Q: what are the possible causes of favourable Wage rate variance

A: Labor or wage Rate variance: The labor rate variance measures the difference between the actual and…

Q: what would be the difference in gross margin between fifo and lifo cost flow assumptions

A: The difference in gross margin between FIFO (First-In, First-Out) and LIFO (Last-In, First-Out) cost…

Q: Which tool can be used to easily calculate the change in profit resulting from a change in sales…

A: Cost-volume-profit analysis: Cost-Volume-Profit Analysis (CVP analysis), also commonly referred to…

Q: “Overhead variances should be viewed as interdependent rather than independent.” Give an example.

A: Overhead variance: It refers to that difference amount which is computed by deduction of actual…

Q: is direct material variance a measure of?

A: Direct material variance is the difference between standard material costs and actual material costs…

Q: what are the possible causes of favourable material price variance

A: The difference between the actual price paid for materials used in production and the standard price…

Q: What is a target cost per unit?

A: The target cost per unit refers to the cost that is to be estimated that the customers are willing…

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.