0
The ratio or standard cost methods of estimating are classified based on their approach to cost estimation. The ratio method involves using historical data to establish a proportional relationship between costs and a specific activity or output level, often expressed as a percentage. In contrast, the standard cost method involves calculating predetermined costs for materials, labor, and overhead based on expected performance, allowing for variance analysis against actual costs. Both methods aim to provide insights into budgeting and financial planning.
What else can I help you with?
Is assets directly associated with non-current assets classified as held for sale is used to calculate the acid-test ratio?
No, assets classified as held for sale are not included in the calculation of the acid-test ratio. The acid-test ratio focuses on a company's most liquid assets, specifically cash, cash equivalents, and receivables, excluding inventory and non-current assets. Since non-current assets held for sale do not represent liquid assets that can be quickly converted into cash, they are not part of this ratio.
What is the standard ratio for debtor turnover ratio?
The standard ratio for debtor turnover, also known as accounts receivable turnover, typically varies by industry, but a common benchmark is between 6 to 12 times per year. A higher ratio indicates more efficient collection of receivables, meaning the company is converting credit sales into cash more quickly. However, the ideal ratio can differ based on business model and credit policies, so it's essential to compare it with industry peers for a more accurate assessment.
What is the standard net to gross ratio?
The ratio of the current net market value of open positions held between two counterparties to the current gross market value of positions between the same counterparties.
Is ratio analysis a form of horizontal analysis?
No, ratio analysis is not a form of horizontal analysis; they are distinct methods of financial analysis. Ratio analysis involves evaluating the relationships between different financial statement items, such as profitability, liquidity, and efficiency ratios. In contrast, horizontal analysis compares financial data over multiple periods to identify trends and growth patterns. Both methods provide valuable insights, but they focus on different aspects of financial performance.
Do you include deferred taxes in current assets when calulating current ratio ratio?
No, deferred taxes are not included in current assets when calculating the current ratio. The current ratio is defined as current assets divided by current liabilities, and it typically includes cash, accounts receivable, and inventory, among others. Deferred tax assets are generally classified as non-current assets, as they represent taxes that can be recovered in future periods.
What is the standard ratio for inventory turnover ratio?
five
What methods for estimating retirement income needs assumes retirement expenses will be some fixed proportion of your preretirement needs?
The replacement ratio method assumes that retirees will need a certain percentage of their preretirement income to maintain their standard of living in retirement. Typically, 70-80% of preretirement income is suggested for this method. It is based on the assumption that some expenses may decrease in retirement, such as commuting costs, but it doesn't consider individual circumstances, like healthcare expenses or lifestyle choices.
Which of the following methods for estimating retirement income needs assumes retirement expenses will be some fixed proportion of your preretirement needs?
The replacement ratio method assumes retirement expenses will be a fixed percentage of preretirement needs, typically ranging from 70-80%. It is calculated by dividing desired retirement income by preretirement income.
How to calculate the adversely classified items coverage ratio?
Adersely Classified Assets/Tier 1 Capital +Allowance
What are two methods for comparing numbers?
ratio and difference
What is the standard ratio of chantilly cream?
The standard ratio of Chantilly cream is; 60 grams of sugar for every 200 milliliter of whipped cream.
What is the standard photo aspect ratio used in most photography?
The standard photo aspect ratio used in most photography is 3:2.
What is the standard photo ratio used for most digital images?
The standard photo ratio used for most digital images is 3:2.
What is the ratio 3 to 5?
5:3 is the ratio in standard format.
What is the standard voltage conversion ratio from 240 volts to 120 volts?
The standard voltage conversion ratio from 240 volts to 120 volts is 2:1.
What is the standard Room size ratio?
1:1.5
What does SDR mean in pipe?
standard dimension ratio
