If a customer purchases Charmin bath tissue at a price that is higher but of the same quality as a generic brand, Charmin has established brand equity with the customer.
What does "brand equity" entail?
A marketing term for a brand's value is "brand equity."Consumer experiences and perceptions of the brand determine that value.Positive brand equity indicates that people value a brand.
What is a brand when multiple products are sold under the same name?
Umbrella branding, also known as family branding, is a marketing strategy in which a single brand name is used to sell two or more products that are related to one another.Companies with positive brand equity (the value of a brand in a particular market) typically employ umbrella branding.
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which of the following statements are true? multiple select question. the requirements for establishing a corporation vary from state to state. corporations are subject to less regulation than proprietorships. a partnership is a separate legal entity created by the authority of a state government. a proprietorship is the simplest form of business organization to organize and operate.
By definition, a partnership business is one in which two or more people pool their resources to form a company and agree to split profits, losses, and risks.Law firms, physician groups, real estate investment firms, and accounting groups are all examples of common partnerships in business.
Which five characteristics do partnerships share?
Keep in mind that both parties should communicate, be accessible, flexible, offer mutual assistance, and produce measurable outcomes.When it comes to making your partnership agreements work best, these qualities are essential.
What is an example of a partnership?
A partnership is a contract between two or more people to manage the business and divide its assets and profits.Profits and liabilities are shared by all members of a general partnership business.Physicians and lawyers frequently form limited liability partnerships.
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omputer equipment was acquired at the beginning of the year at a cost of $56,900 that has an estimated residual value of $4,200 and an estimated useful life of 5 years. a. determine the depreciable cost. fill in the blank 1 of 1$ b. determine the straight-line rate. fill in the blank 1 of 1 % c. determine the annual straight-line deprecia
computer equipment was acquired at the beginning of the year Calculate depreciable cost as follows: Depreciable cost = Cost of the asset - Residual =$50,200-$4,300 = $45,900 Therefore, depreciation cost is $45,900
Calculate straight-line rate as follows: Straight-line rate= 100,Life of the asset=100,5 years 20% Therefore, straight-line rate is 20%, Calculate annual straight-line depreciation as follows: Cost of the asset - Residula value,Annual depreciation = Number of years = 5 years, $50,200 - $4,300 =$45,900 ,5 years = $9,180
Therefore, annual depreciation is $9,180
The depreciated cost is the value of an asset after its useful life has expired, which is reduced over time by depreciation. Because the value of an asset is constantly reduced by calculating the depreciation cost, the depreciated cost method always allows accounting records to show it at its current value.
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g applies for a policy as a standard risk after paying the initial premium. after thorough underwriting, the insurer issues the policy as a substandard risk. the issued policy represents:
g applies for a policy as a standard risk after paying the initial premium. after thorough underwriting, the insurer issues the policy as a substandard risk. the issued policy represents The insurer’s counteroffer
The statement made in response to an initial offer, which makes it clear that the previous offer was rejected, is referred to as a counteroffer. The initial offer has three options: accept the counteroffer, reject the counteroffer, or submit a new offer.
Until one of the parties accepts the other's offer, there is no binding agreement between them. These kinds of offers are frequently encountered in commercial talks, transactions, and private deals. The counteroffer is frequently used in negotiations for jobs, homes, and automobiles.
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what are two internal governance mechanisms put in place to align principal and agent incentives? (check all that apply.)
Strategic control and reward systems are two internal governance mechanisms put in place to align principal and agent incentives.
An agent, in legal terminology, is a person who has been legally empowered to act on behalf of every other individual or an entity. An agent can be employed to represent a consumer in negotiations and different dealings with 0.33 parties.
Section 182 of the Indian Contract Act defines the time period Agent and fundamental, as consistent with which, Agent is the character appointed by using every other individual to represent in dealings or any sort of professional paintings with a third celebration. The essential is the person who appoints the agent to represent him.
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constructing plastic containers produces air pollutants. therefore, in the market for plastic containers, part 2 a. the marginal social cost curve is above and to the right of the demand curve. b. there is a gap between quantity supplied and quantity demanded in equilibrium. c. the marginal social cost curve is above and to the left of the supply curve. d. the marginal social cost curve is below and to the right of the supply curve. e. the marginal social cost curve is below and to the left of the demand curve.
Due to the release of air pollutants during the production of plastic cotainers, the following option will take place in the market for the containers.
C. the marginal social cost curve is above and to the left of the supply curve.
What is a supply curve?A supply curve is a graphical representation of the relationship between the price of a commodity or service and the quantity of that good or service available at any given time. The price is shown on the vertical axis on the left side of the supply curve graph, and the quantity of items is shown on the horizontal axis at the bottom. The supply schedule, a table stating the quantity supplied at each price, is where the data used to draw the supply curve is taken from.
The amount of a resource that businesses, producers, workers, providers of financial assets, or other economic agents are willing and able to offer to the market or to a specific person is known as supply in economics.
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Total cash disbursements for
inventory is $50,000, for
selling and administrative
expenses is $30,000, and for
a capital expenditure is
$40,000. Total cash
disbursements on the cash
budget are
$60,000.
$50,000.
$80,000.
$120,000.
$70,000.
There have been $120,000 in total cash outlays from the cash budget. The development of a cash budget alerts management to prospective financial surpluses or shortfalls.
What does the term "cash budget" mean?A prediction of a company's cash flows over a specific time period is called a cash budget. The budget under consideration may cover a week, month, quarter, or entire year. This budget is used to assess whether the organization will have sufficient funds to operate for the allotted time.
What other types of financial budgeting exist?A short-term cash budget includes projected sales revenue, major cash expenses, and significant assets and liabilities. A company's cash flow over longer time frames, like two years, is displayed in a long-term cash budget. Finance experts can use this information to make capital spending plans.
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consider the $400,000 estimated salvage value. is it appropriate to discount it at the same rate as the other cash flows? what about the other cash flows - are they all equally risky?
When an asset has a salvage value of $400,000, it is not appropriate to discount it at the same rate as the other cash flows, because its discounting is proportionate throughout the periods of its life. Other cash flows, on the other hand, are higher in risks.
Salvage value can be referred to or considered as the value that determines the value of an asset at the end of a particular accounting period. This salvage value is the difference between the actual costs and the amount of depreciation charged over the asset.
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would some consumers be willing to accept some risk from using a product if it means the product is cheaper? why?
Some consumers would be willing to accept some risk form using a product if it mean the product is cheaper, because they are implementing trade-off concept between safety and product price.
Trade-off explains that in order to gain one thing, we have to accept of having less or even loss of something else.
In economics, trade-off is also known as opportunity cost. Opportunity cost is the cost of opportunity we missed when we decide to purchase or purse another product.
From the perspective of the uttainable triangle, we know that a product could only have 2 out of the triangle sides--speed, price, quality. You will not be able to meet all 3 aspects in one product. This theory is align with trade-off concept.
If we look back at the case, some consumers may prefer to have cheaper product even if the product's quaility is poor. Those customers are already aware with their decision's side effect and concequences, in this case is in form of product risks.
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During 2018, Noriko paid the following taxes related to her home:
Real Estate property taxes on residence (paid from escrow account)
$ 1,800
State personal property tax on her automobile (based on value)
600
Property taxes on land held for long-term appreciation 400
What amount can Noriko deduct as property taxes in calculating itemized deductions, assuming she was under the $10,000 limit for state and local taxes, for 2018?
$400.
$1,000.
$2,400.
$2,800.
$2,800.
$1,800 + $600 +$400 = $2,800
As the state personal property tax was based on the value of her vehicle, it is a tax and not a fee, and is allowable as a deduction. The Tax Cuts and Jobs Act (TCJA) of 2017 limited the deduction for income, real estate and other state and local taxes. Beginning in 2018, the limitation for the deductibility of all state and local taxes is $10,000 ($5,000 for MFS).
If Noriko is under the $10,000 cap for state and local taxes for 2018, she can deduct $2,800 in property taxes when calculating her itemized deduction. The right response in this case is option D.
Real estate that is held by a person, a business, or another sort of legal entity is subject to property tax. Real estate ad-valorem taxes, which are viewed as regressive taxes, are the most common type of property tax. It is computed by the local government in the area where the property is situated, and the owner is responsible for paying for it.
$1,800 in real estate property taxes for a home
Her car's state personal property tax is worth $600.
$400 in property taxes for a plot of land preserved for future value
Since the state's personal property tax was calculated based on the value of her car, it qualifies as a tax rather than a charge and can be deducted.
= $1,800 + $600 +$400
= $2,800
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ordering cost refers to the expense of placing an order for additional inventory and does not include the cost or expense of the product itself.
Given the question, this statement can be regarded as True. ordering cost is the cost associated with placing a order for additional inventory, excluding the cost of shipping.
How else would you define cost?
A cost is the value of money that was spent on the making or providing of a service or product and is now unavailable for use in accountancy, retailing, research, or accounting. In the business world, the cost is indeed the total amount paid to acquire something, hence the price might be tied to the acquisition.
Do you say "costs" or "costs"?
The word "expense" in the single form refers to the entire group, whereas "costs" refers to each individual member of the group.
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The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. The Skulls' president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows:Location Annual Fixed VariableAlpha Ave. $ 5,000 $ 200 per personBeta Blvd. $ 8,000 $ 150 per personIf it is estimated that 30 persons will be living in this new chapter house, which location should the Skulls select?Multiple ChoiceAlpha Ave.become a virtual organization.either Alpha Ave. or Beta Blvd.Beta Blvd.reject both Alpha Ave. and Beta Blvd.
The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. The Skulls' president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, the location will skull selects is alpha ave.
-Multiply the variable cost by the volume, then add that product to the fixed cost
Numerous other company categories have historically been categorized as public utilities, and as a result, have been legally required to go through the ratemaking process in order to establish the permissible service costs for their sector. Public utilities are often considered to be a de facto monopoly (or "natural monopoly") for the services they offer within a certain jurisdiction, despite the fact that this categorization has varied throughout time. Railroads, the distribution of natural gas, telecommunications, and the generation and distribution of electricity are examples of well-known public utilities that are required to determine rates through ratemaking.
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Many people retain their classically conditioned fears without any conscious recollection of how or when those fears were learned. This best illustrates ________ memory.
a. implicit b. short-term c. sensory d. working e. state-dependent
Many people retain their classically conditioned fears without any conscious recollection of how or when those fears were learned. This best illustrates a. implicit memory.
In the field of psychology, an implicit memory can be described as a long-term memory in which no conscious retrieval of the old memories can be found.
Implicit memory is an unconscious type of long-term memory that shapes our current actions based on memories or events that we no longer remember.
For example, there are people who fear something or get triggered by an action although they cannot generate a conscious memory of what created the fear in them and how were these fears learned.
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what is the advantage for candidates in having a one-way video interview over a traditional face-to-face interview? check all that apply.
Candidates can practice answers based on a predetermined set of questions provided by the interviewer, candidates can practice and perfect their responses by rerecording, candidates can be interviewed at their leisure
Explain.
They'll probably want you to make a video of yourself, which you should then transmit to them by email or another medium they'll designate. The hiring group will watch your video after receiving it. Someone will contact you directly if they determine you are a strong contender for the position.A one-on-one interview is when a contributor is questioned individually about their actions, preferences, attitudes, and experiences related to a particular subject or object of interest Both in-person and online interviews are available.To know more about Interview here
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agile project management works well with projects that take an iterative approach. what does this mean? select all that apply.
The manager by iterative approach means that the project deliverables improves continuously based on feedback and the team operates within many short blocks of time.
What does iterative approach mean?In an iterative approach, changes are made to the discussion topic, the stimulus, and occasionally even the methodology as the study project progresses. The inputs for later interviews are influenced by what is learned from the early research sessions.
How does iterative approach apply in the agile project management?Feedback is used to continuously enhance project deliverables.
The group works in a variety of brief time slots.
Throughout a project's life cycle, processes are frequently repeated.
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you have accepted a loan in the amount of $15,000 for your new car. you have agreed to pay the loan back in four years. what is your monthly payment if you agree to pay an interest rate of 9% compounding monthly? solve this problem for i
Your monthly payment on the loan for the new car, given the interest rate, and the compounding period is $ 373. 28
How to find the monthly payment ?The monthly payment will be an annuity because it is constant and periodic.
The interest rate on this payment needs to be converted to a monthly figure as :
= 9 % / 12
= 0. 75 %
The number of periods is :
= 4 years x 12 months per year
= 48 months
The monthly payment is :
= Loan amount / Present value interest factor of annuity, 48 periods, 0.75%
= 15, 000 / 40.18478188518
= $ 373. 28
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galla incorporated is a competitive product market. the expected selling price is $395 per unit, and galla’s target profit is 20% of the selling price. using the target cost method, the highest that galla’s cost per unit can be is:
When using the target cost method , the highest that Galla's cost per unit could be is $ 316
How to find the cost per unit ?The Target cost method allows a company to produce a unit of a good based on the cost that they would like to produce that good at . This cost would be decided upon based on the selling price of the company , and the amount of profit that a company would like to make from that selling price per unit.
The highest that Galla Incorporated would like to be their cost per unit would be :
= Targets sales price - Target Profit
Target sales price = $ 395
Target profit = ( 20 % x 395 ) = $ 79
The highest cost per unit is :
= 395 - 79
= $ 316
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Which of the following represents an aggressive approach to demand management in the service
sector when demand and capacity are not particularly well matched?
a. inexpensive rates for weekend phone calls
b. appointments
c. reservations
d. first-come, first-served
e. none of the above
Inexpensive rates for weekend phone calls represents an aggressive approach to demand management in the service sector when demand and capacity are not particularly well matched. So option a is correct option of the given statement.
Demand management: What does it mean?Planning technique called demand management. It is utilized by businesses to forecast and plan how to meet service and product demand. Connectivity between operations and marketing is improved via demand management. Customer demands, capacity, and strategy are better coordinated as a result.
What does demand management aim to achieve?In order to meet the market where it is, you must first understand the market and the demand chain. Only then can you build an operational strategy. You can develop project portfolios and use portfolio management to carry out your demand strategies after you have them.
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Costs of Acquiring Fixed Assets
Melinda Stoffers owns and operates ABC Print Co. During February, ABC incurred the following costs in acquiring two printing presses. One printing press was new, and the other was purchased from a business that recently filed for bankruptcy.
a. Indicate which costs incurred in acquiring the new printing press (1-6 below) should be debited to the asset account.
The costs incurred in acquiring new printing press should be debited to asset account is true.
What is an incurred cost?An expense that a business assumes as a result of using an asset or making some other profit from it is known as an incurred cost. The principle that the accrual accounting concept specifies for expense recognition serves as the foundation for the idea of an incurred cost. According to the accrual accounting's expenditure recognition concept, expenses and receipts should be recorded as soon as they are incurred rather than when money is transferred. The accrual accounting technique requires recording the expense as soon as the asset is used up, even if the actual invoice from the supplier has not yet arrived. Incurred costs should be noted on the income statement's debit side because they are an expense for the business.
1. Fee paid to the factory representative for installation - Yes
2. Freight -Yes
3. Insurance while in transit-Yes
4. New parts to replace those damaged in the unloading- Yes
5. Sales tax on purchase price-Yes
6. Special foundation- Yes
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Leo Ink is a company that produces stationery items. In order to remedy the current low-profit situation, the company plans to hire personnel and form a brand-new marketing team. The labor market proves to have a shortage of qualified marketing personnel. In this situation, which of the following strategies could Leo Ink follow to make profits? Increase the salary offered to hire the needed marketing personnel Increase its scale of production instead of hiring people O Branch into the production of other itens O Continue in the present state
In the current low-profit situation The strategies could Leo Ink follow to make profit is Expand your business to produce other items. Option C is correct
If you choose a selling price for a product that isn't much higher than its cost, you have a limited profit margin. If your company's profit margin is low, you usually sell products of ordinary quality and compete in a market with fierce competition. Low profitability is typically caused by high operational costs, low income, or, most often, a combination of the two. Excessive costs are frequently caused by ineffective operational procedures, which lead to insufficient vehicle utilization, an overly large fleet, and an overabundance of staff in developing nations.
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Mr. and Mrs. Eyre own residential rental property that they would like to dispose of in a nontaxable exchange. Which of the following would not qualify as like-kind property?a. Commercial office buildingb. Undeveloped landc. Warehouse used to store transportation equipmentd. All of the these qualify as like-kind property.
Commercial office building, Undeveloped land, and Warehouse used to store transportation equipment.
the device is a fashion label presently based in Los Angeles, California. initially launched in 1976 by using Christian Restoin, husband of former trend Paris Editor-in-chief Carine Roitfeld, the logo is presently carried in over 60 nations and six hundred retail doors, inclusive of two equipment retail shops.
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various depreciation schedules have been computed for an asset having a salvage value of $90 at the end of its recovery period. identify the type of depreciation used in each case.
The most appropriate answers is Method A for the given question.
What is depreciation?A tangible item's cost can be spread out over the period of its life span using the accounting approach of depreciation. Depreciation indicates how much of an asset's worth has been expended. It makes it possible for companies to buy assets more than a predetermined period of time and profit from those assets.
For SYOD,
Depreciation in year 1 = 970*5/(5+4+3+2+1) = 323
Depreciation in year 2 = 970*4/(5+4+3+2+1) = 259
Depreciation in year 3 = 970*3/(5+4+3+2+1) = 194
Depreciation in year 4 = 970*2/(5+4+3+2+1) = 129
Depreciation in year 5 = 970*1/(5+4+3+2+1) = 65
Hence Method A is SOYD
The methods listed in the table above include:
Method A: SOYD;
Method B: SL;
Method C: DDB-SL;
Method D: MACRS;
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according to the taylor rule, what will the federal reserve do if output falls below its potential gdp?
Under this rule, if the economy is below full employment, the GDP gap is expressed as a negative number and interest rates should be lowered. This Taylor rule states that if actual GDP is 1% below potential GDP, the Federal Funds Rate should be 0.5 percentage points below the central bank's neutral interest rate target.
Exceeding inflation and growth targets will increase the base rate according to the Taylor rule while falling below will decrease it. The Taylor rule adjusts the equilibrium interest rate based on the deviation of inflation and real GDP growth from the central bank target.
The Taylor Rule proposes adjusting the FF rate based on the difference between actual and target inflation and the output gap (the difference between real GDP growth and expected GDP).
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true or false: markets and private ownership of property create incentives to work hard and can contribute to growth in an economy.
It is true that markets and private ownership of property create incentives to work hard and can contribute to growth in an economy.
Private ownership of property promotes potency by giving the owner of resources an incentive to maximise its worth. The additional valuable a resource, the additional commerce power it provides the owner of the resource. this is often as a result of, during a capitalist system, somebody who owns property is entitled to any worth related to the property.
Increases in capital merchandise, labor, technology, and human capital will all contribute to growth in an economy. Economic process is often measured in terms of the rise in mass value of extra merchandise and services made, mistreatment estimates like GDP.
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Beryl enters into a contract with Clay for a guided tour of Deep Canyon. Clay represents that he is an experienced, knowledgeable guide, when in reality he has never been in the canyon. Most likely, Beryla. could exert duress to obtain a new guide.b. can rescind the deal based on fraudulent misrepresentation.c. might recover damages for the mistake.d. must comply with the contract because the representation is an opinion.
Option b is correct. Most likely, Beryla can rescind the contract based on fraudulent misrepresentation.
All parties to the agreement must have "contractual capacity" in order for it to be enforceable. Legal jargon for the minimal mental capacity needed to enter into an agreement is "contractual capacity." In other words, people who lack the legal ability to enter into a contract are deemed to be incompetent, and they have the right to "void," or set aside, the agreement.
Three groups of people are recognized by the law as lacking the competence to enter into a contract: minors, people with psychological disorders, and those who are intoxicated. If any member of these categories signs a contract, they might view it as "voidable." This safeguards the party lacking capacity from being pressured into a deal that takes advantage of his or her lack of business acumen.
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in monopolistic competition, once you find the profit-maximizing quantity, how do you find the profit-maximizing price? multiple choice question. you read the corresponding price from the marginal cost curve. you read the corresponding price from the average total cost curve. you read the corresponding price from the marginal revenue curve. you read the corresponding price from the demand curve.
In monopolistic competition, after the profit-maximizing quantity is determined, the profit-maximizing price is determined by reading the equivalent price from the demand curve. Thus, the correct choice is you read the corresponding price from the demand curve.
What is monopolistic competition?Monopolistic competition is a sort of imperfect competition in which several producers compete against one another yet sell items that differ from one another and hence are not ideal replacements. Monopolistic competition occurs when a firm accepts the prices charged by its competitors as given and disregards the influence of its own pricing on the prices of other companies.
Monopolistic competition at its best:
1. Grocery stores: Grocery stores operate in a monopolistic market since there are numerous enterprises selling many of the same commodities but with different branding and marketing.
2. Hotels: A good illustration of monopolistic competition is the hotel industry.
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tarzak inc. has earnings of $10 per share, and investors expect that the earnings per share will grow by 3 percent per year. furthermore, the mean pe ratio of all other firms in the same industry as tarzak is 15. tarzak is expected to pay a dividend of $3 per share over the next four years, and an investor in tarzak requires a return of 12 percent. the estimated stock price of tarzak today should be using the adjusted dividend discount model. group of answer choices $116.41 $104.91 $161.15 none of the above
The estimated stock price of Tarzak today should be using the adjusted dividend discount model is $116.41. Option A.
Solution:
Dividend for first 4 years = $3 per share
Required return = 12%
Present value of discount payments = $3/1.12 + $3/1.122 + $3/1.123 + $3/1.124 = $9.11
Present value of stock price = $168.9 / 1.124 = $107.34
Estimated stock price = $9.11 + $107.34 = $116.45
The Dividend Discount Model has some important drawbacks including a lack of accuracy. The main limiting factor of DDM is that it can only be used by companies that pay increasing dividends. DDM is also considered overly conservative as it does not take stock buybacks into account.
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rolex is a luxury brand of watches, and in order to promote its reputation as a first-rate corporation it sponsors the metropolitan opera, a world renowned arts institution. the goal of rolex is to showcase its company image. this is an example of .
The goal of rolex is to showcase its company image , this is an example of institutional advertising.
What is institutional advertising?
Institutional advertising can be described as promotional activities aimed at enhancing brand reputation, building a positive brand image, or encouraging support for a particular brand or organization. Institutional advertising is a strategy to promote an organization and all of its products. Sometimes referred to as corporate advertising, this strategy typically focuses on increasing the overall exposure of a company's brand, image and core message.
What are the goals of agency advertising?Agency advertising focuses on promoting a company's image in order to improve its reputation with its customer base. The primary purpose of institutional advertising is not to drive sales, but to create and disseminate a positive image and generate goodwill for the company and industry.
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which of the following inputs contains the basic information that will be used by an evaluation body for selecting one or more successful bidders?
The Seller Proposal was one of the inputs since it contained the fundamental data that an evaluation body would utilise to choose one or more winning bidders.
What is basic information?Basic Information refers to Personal Data about a Data Subject, such as their name, address, and means of getting in touch with them. It also includes copies and records of those contacts, messages, and interactions. Include the fundamentals of your company, such as its history, name, address, organisational structure, management, number of employees, and operating hours. To give the reader context, it can be useful to group your company under a particular industry.
What type of information is used in business?General surveys, data, articles, books, references, search engines, and internal records are all sources of business information that a company can use to inform its strategy, execution, and assessment of its operations. These details are also provided by acquaintances, clients, coworkers, and suppliers. Daily newspapers, financial, trade, and association periodicals, databases, government statistics, directories, technical manuals, and a wide range of other sources are examples of published sources. Firm information is essentially any information that aids a business in understanding its surroundings because "information" is defined more by context than by content.
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question 5 you run a colleague test on your presentation before getting in front of an audience. your coworker asks a question about a section of your analysis, but addressing their concern would mean adding information you didn’t plan to include. how should you proceed with building your presentation?
Maintain interest and discuss potential repercussions. Even if you have to pretend to be calm, inquire about what took place, and offer any assistance that may be required.
You continually provide the employee with opportunities to grow. Also, be sure to explain what happened when the instructions weren't followed.
If a coworker wasn't putting in their fair share of effort, what would you do?Approach them professionally, but do not immediately approach management. Instead, behave professionally and have an open conversation with the colleague who offended you. Inform them that your performance at work is suffering as a result of their work habits. Also, if you're angry, don't approach them.
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Assuming that the standard fixed overhead rate is based on full capacity, the cost of available but unused productive capacity is indicated by the:
factory overhead cost volume variance.
Assuming that the standard fixed overhead rate is based on full capacity, the cost of available but unused productive capacity is indicated by the: factory overhead cost volume variance.
Similar to how direct materials or direct labor are scrutinized for deviations from norms, factory overhead costs are likewise examined. Separating factory overhead costs into their fixed and variable components is the first step.
A controllable variance and a volume variance can be distinguished from factory overhead variances.
The difference between the actual variable overhead expenses and the budgeted variable overhead for real production is known as the variable factory overhead controlled variation.
The planned fixed overhead at normal capacity and the standard fixed overhead for the actual units produced make up the fixed factory overhead volume variance.
Fixed factory overhead volume variance = (standard hours normal capacity – standard hours for actual units produced) x fixed factory overhead rate
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