1.

Definition of variance analysis

Is the comparison between budgeted items vs real items in order to see how business performance impacts, if and
invesment proyect is favorable or adverse.
2. Definition of equivalent production
Equivalent Production represents the production of a process in terms of completed units. At the end Of any given
period there are likely to be partly completed units (work-in-process). It is evident that some of the costs pertaining
to this period are attributable to the units which have not been completed.
3. When is a product favorable
when in costs, the bugeted is less than the real
when in expenses, the bugeted is less than the real
when in sales, the real is more than the bugeted
4. When is a product adverse
when in costs, the bugeted is more than the real
when in expenses, the bugeted is more than the real
when in sales, the bugeted is less than the real

5. What is the difference between direct material Price and direct material usage
Direct Material Price Variance is the difference between the actual cost of direct material and the standard cost
of quantity purchased or consumed.
Direct Material Usage Variance is the measure of difference between the actual quantity of material utilized during
a period and the standard consumption of material for the level of output achieved.

6. How do we measure labor?

We measure through the direct labor rate variance
((actual hours x standard price) - (standard hours x standard price)) x production
7. What are the parts of balance
 Current assets
 Fixed Assets
 Tangible
 Intangible
 Pasivo circulante
 Long-Term Debt
 Shareholders’ Equity
8. What is the formula or working capital
Working Capital = Current Assets - Current Liabilities
9. Definition of bond emissions
Act of creating and distributing securities or securities by a company in order to obtain financial resources.
Institutions usually issue bonds to raise capital. When a corporation, government or other institution issues bonds,
it effectively receives a loan from the party that buys the bond, a loan that bears interest and eventually, must be
paid in full
10. Example of double taxation
An Ecuadorian has commercial activity in Spanish territory, it is taxed for the income generated abroad and is
taxed in Ecuador for the income generated as domiciled.
11. In Ecuador who administrates agency problems
Refers to a conflict of interest between a General Manager and the company's shareholders