Different variances to evaluate performance
It is important to have performance measures to evaluate managers as they control resources and invest in assets for the company. Please describe how you could use different variances to evaluate performance.
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During the second quarter of operations, the company again produced 50,000 units but sold 54,000 units (assume no change in fixed costs).
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By how much would the annual cash inflows from this project have to increase in order to have a positive net present value?
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Paid back 10% of its long-term debt. Received $25,000 for the issuance of an additional 1,000 shares of common stock. Purchased $50,000 of office furniture on a credit basis.
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