Piechocki Corporation Manufactures and Sells a Single Product

question 38

Multiple Choice

Piechocki Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 5,900 units, but its actual level of activity was 5,940 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May:Data used in budgeting: Actual results for May:
The spending variance for direct materials in May would be closest to:

• A) $2,434 U
• B) $1,950 U
• C) $2,434 F
• D) $1,950 F

Explain the role of credit unions, finance companies, and Federal Reserve in the financial system.

Understand bartering as an alternative to the use of money in transactions.

Recognize the characteristics of money that make it effective in its various roles (divisibility, durability, acceptability, stability, portability).

Identify the instruments and accounts used for savings and their features including certificates of deposit, money market accounts, and savings accounts.

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Definitions:

Insurance

A financial product or agreement that provides compensation for specific losses or damages in return for payments made.

High Risk

Refers to situations or investments that have a high potential for loss or failure.

Average Premium

The mean amount paid for insurance coverage across a defined set of policies, reflecting the average cost to the insured.

Expected Loss

A financial term representing the anticipated amount of loss a company may suffer, calculated as the probability of an event times the potential loss amount.