Define residual value.

Q: How do the Internal-Rate-of-Return Criterion relate to the PW Analysis?

A: Capital budgeting:   It is the process in which the business uses to determine which proposed fixed…

Q: What is variance analysis? Explain?

A: Variance Analysis: Variance analysis is the process of ascertaining the deviations between actual…

Q: What is the standard deviation of asset​ M?

A: Standard deviation tells us how much the expected vary from the actual result.

Q: Define the term Unrealized gain.

A: Investment: The act of allocating money to buy a monetary asset in order to generate wealth in the…

Q: Assume that every asset has the same expected return and variance. Furthermore, all assets have the…

A: Variance is a statistical tool used to measure the extent to which the returns are spread from the…

Q: (b) Calculate the material quantity variance

A: Material quantity variance is also known as material usage variance. Formula: = ( Standard quantity…

Q: Define the term cost variance.

A: Cost variance is the difference between actual costs and budgeted or estimated costs. Many of the…

Q: Define Valuation allowance

A: Valuation allowances are reserves created, which can set off deferred tax assets. If it is probable…

Q: ffective rate?

A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…

Q: What is the meaningful total variance for performance evaluation purposes?

A: Flexible budget: A flexible budget is a budget prepared by the company for effective evaluation of…

Q: Calculate the Mean value

A: PERT technique refers to the techniques which are used to simplify the scheduling and planning of…

Q: What is the Internal-Rate-of-Return Criterion?

A: Internal rate of return (IRR): The internal rate of return (IRR) is a measure utilized in capital…

Q: Describe the revaluation model.

A: Introduction: The revaluation model stretches a business the option of carrying a fixed asset at its…

Q: how to compute quantity/efficiency variance

A: Cost accounting is beneficial since it can demonstrate where a corporation spends money, earns…

Q: Describe how to estimate variable consideration.

A: Revenue: It is the income generated by the business over their regular business operations.

Q: When using the high-low method, should you base the high and low observations on the dependent…

A: Cost Function:Cost function represents the basic change comes in the total cost due to the change in…

Q: Define average return

A: The formula to compute average return as follows:

Q: Describe the Internal-Rate-of-Return Criterion?

A: Internal rate of return (IRR) is defined as the rate of discount at which the NPV of human capital…

Q: Define direct material variance.

A: Variance:   Variance refers to the difference level in the actual cost incurred and standard cost.…

Q: controllable margin

A: Controllable margin = Contribution margin - Controllable fixed costs

Q: Draw a figure to explain Elements of required return - establishing a MARR?

A: The figure is represented as below: Note: Values assumed

Q: Find material price variance

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Define fixed overhead variance.

A: Fixed Overhead Variance is the difference between actual and absorbed fixed production overheads…

Q: Explain an example how to calculate cost variance.

A: Cost variance is the difference of standard cost and actual cost in manufacturing of a product. Cost…

Q: Define each of the following terms:f. Residual value

A: Introduction: Residual value is one of the elements of leasing computation or process. It defines…

Q: In what circumstances is the compressed adjustedpresent value (APV) model useful, and how wouldit be…

A: The question is based on the concept of adjusted present value (APV). APV uses net present value…

Q: Define devaluation

A: Currency- Currency is defined as money in terms of paper or coins which is issued by the government.…

Q: Describe the procedure to compute the variance of return for a project?

A: Variance is ascertained as follows: The mean worth is dictated by including all the information…

Q: Define cost variance.

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

Q: Elements of required return - establish a MARR? Explain how/

A: Introduction: A capital investment to be appealing should have a return which goes beyond the…

Q: Define Net profi t margin

A: Net Profit Margin is calculated by dividing Net Profit by Revenue. It is a financial ratio used to…

Q: Define the term average collection period?

A: Accounts receivable turnover analyzes the number of times accounts receivables is collected and…

Q: guaranteed residual value.

A: Guaranteed residual value  Present value is added to sales

Q: Explain how to calculate static budget variance.

A: Static budget: Static budget is a master budget that is prepared for only one level of sales…

Q: What is a revenue variance and what does it mean?

A: