Parallel Enterprises Has Collected the Following Data on One of Its

question 35

Multiple Choice

Parallel Enterprises has collected the following data on one of its products.During the period the company produced 25,000 units.The direct materials quantity variance is:

• A)$27,500 unfavorable.
• B)$50,000 unfavorable.
• C)$50,000 favorable.
• D)$22,500 unfavorable.
• E)$22,500 favorable.

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Definitions:

Cash Inflows

Cash inflows refer to the money entering a business from various sources such as sales, financing, or investment returns, crucial for operational funding and growth.

Cash Inflows

Money or money's worth received by a business during a period, arising from various sources such as operations, financing, and investing activities.

Discount Rate

The interest rate that is employed to figure out the present value of future cash flows during discounted cash flow analysis.

Required Rate

The minimum return an investor expects to achieve when investing in a particular asset, taking into account its risk level.