Question

Question 19 What does a cost variance measure? Not yet answered Marked out of 2.00 P Flag question Select one: O A. the volume discounts companies receive when ordering direct materials in large quantities O B. the difference between the cost the company pays and the cost its competitors pay OC. the change in costs over time O D. how well the business keeps unit costs of material and labor inputs within standards

Answer 1

ANSWER 19) D.how well the business keeps unit cost of material and labour inputs within standards.

ANSWER 20) B.6%.

IRR is the rate at which Net present value( NPV) is 0.

NPV= Present value of cash inflows - initial investment cost.

here, cash inflow every year is 197062.

Initial investment= 1100000.

Present value annuity factor of $1 at the rate of 6% for 7 years given is 5.582

Therefore Present value of cash inflow for 7 years = 197062*5.582=1100000.

so, IRR is 6% since at 6% rate since NPV at 6%= 1100000-1100000=0

ANSWER 21) D.How well the business uses its material or human resources.

Efficency variance are variances that arise due to efficiency or inefficiency in use of material, labour etc.