Answer:
A.overstate; substitution
Explanation:
Consumer Price Index (CPI): is a measure that examines the weighted average of prices of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking the average of the price changes for each item in the predetermined goods. Changes in the CPI are used to assess price changes associated with the cost of living therefore the CPI is used economist for identifying periods of inflation or deflation.
when we say the CPI overstate inflation; it is because of:
Substitution bias (when the price of a product in the consumer basket increases substantially, consumers tend to substitute lower-priced alternatives; Therefore, it tends to overstate inflation due to a lack of accountability
) and;
Quality bias (over time, technological advances increase the life and usefulness of products).
Answer: 5% of RS 100,000
Explanation:
Opportunity cost is what an economic agent such as an individual, form or government forgoes when a choice is made from different available choices.
Here, since Inaya has used Rs100000 for her ice cream business, the opportunity cost will be the 5% interest that she could have made on the money used for the business
Answer:
July 31
Shrinkage Expense $1,800 ($44,300 - $42,500)
Inventory $1,800 Reflects the loss on inventory account.
Explanation:
When the company conduct a physical inventory of their merchandise, most of the time there are discrepancies between physical counts and books values, then it's necessary to reflect that in the accounting,
The correct way is to reflect the difference as a loss in there is less units of goods or as profit if there more units, it's mostly a loss because of damage or theft.
To this case the total amount on the books on July 31 was $44,300 but when the physical counts was made the result was a total value of $42,500, the difference of $1,800 it's reported as a loss to the company in the income statement.
Answer:
$238,100
Explanation:
Calculation to Determine the pension asset/liability at December 31, 2020
Using this formula
Pension asset/liability at December 31, 2020= Projected benefit obligation -Plan assets
Let plug in the formula
Pension asset/liability at December 31, 2020=$551,500 - $313,400
Pension asset/liability at December 31, 2020= $238,100
Therefore Pension asset/liability at December 31, 2020 is $238,100
