Answer:
C. $ 168 comma 000
Explanation:
The computation of the residual income is shown below:
= Operating income - minimum return
where,
Operating income is $600,000
And, the minimum return equal to
= Invested asset amount × minimum rate of return
= $3,600,000 × 12%
= $432,000
Now put these values to the above formula
So, the value would equal to
= $600,000 - $432,000
= $168,000
We simply applied the above formula
Answer:
b. False
Explanation:
The difference between absorption costing net operating income and variable costing net operating income lies in the <em>fixed costs deferred in closing inventory</em>.
If Production is greater than Sales - <u>Increase in Finished Goods Inventory</u>, Absorption costing net operating income will typically be greater than Variable costing net operating income.
However, If Production is less than Sales - <u>Decrease in Finished Goods Inventory</u>, Absorption costing net operating income will typically be less than Variable costing net operating income.
Answer: Your customer will likely blame you for the defect, not the supplier.
Explanation:
The customer would certainly blame me the seller for the defect, because I was the one that sold the goods to the customer, also the customer is not aware of what transpired between the seller and the supplier. Therefore the seller would have to on his part, lay some complaint to the supplier.
Answer
Purchase government securities
Explanation:
When a central bank wants to increase money supply, a key tool in the open market operation is to sell purchase government securities. With this, they give out money to the economy increasing money supply.
Answer:
The correct answer is option C.
Explanation:
The prisoner's dilemma game is a concept in the game theory. According to this concept, two prisoners who earlier agreed on mutual cooperation will choose the outcome they think is best for themselves. This will eventually lead to a loss for both of them.
That is their individual rational decision will lead to collective irrationality because of noncooperation.
