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1 year ago

The extra costs incurred to avoid holding cash when there is inflation are called the?

Business

1 answer:

Ipatiy [6.2K]1 year ago

8 0

The extra costs incurred to avoid holding cash when there is inflation is called Shoe Leather cost.

<h3>What do you understand by inflation?</h3>

The rate of price growth over a set time period is known as inflation. Sometimes the amount of inflation is expressed in general terms, such as the overall rise in price or the rise in the cost of living nationwide. However, it can also be calculated with more accuracy for some goods, such as food, or for services, like a haircut, etc. In any circumstance, inflation refers to how much the necessary array of goods and/or services has increased in price during a specific time period, most usually a year.

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Which of the following is not a goal of federal economic policy? full employment growth a high savings rate Keynesian economics

Ivan

Answer:

high savings rate

Explanation:

High savings rate is not a goal of federal economic policy. The goal of federal economic policy is to achieve full employment, economic growth and stable prices.

However 'high savings rate' is achieved when interest rates are increased in order to fight inflation and achieve 'stable prices' because people keep their money in the banks to take advantage of the benefit of earning interest BUT this is not always the case because 'higher interest rates' works against full employment by making it too costly for firms to borrow for investments which will definitely create jobs.

5 0

3 years ago

The marketing manager for Mountain Mist soda needs to decide how many TV spots and magazine ads to run during the next quarter.

spayn [35]

Answer: The LP model is given as :

max: 1.180( 420000 A + 500000 B )

subject to : (a.) 7000 A + 2500 B ≤ 100000

(b.) 7000 A ≤ 70000

(c.) 2500 B ≤ 50000

Explanation:

Let us assume;

A be the no. of T.V spots

B be the no. of magazine spots

Given:

(a.) Mountain Mist earns a profit margin of $1.80 on each case of soda that it sells.

(b.) Each TV spot costs $7000 and is expected to increase sales by 420,000 cases.

(c.) Each magazine ad costs $2500 and is expected to increase sales by 500,000 cases.

∴ The objective function of this model will be given as :

max: 1.180( 420000 A + 500000 B )

(d.) A total of $100,000 may be spent on TV and magazine ads combined.

(e.) Mountain mist wants to spend no more than $70,000 on TV spots and no more than $50,000 on magazine ads.

∴ The subjective function will be :

(a.) 7000 A + 2500 B ≤ 100000

(b.) 7000 A ≤ 70000

(c.) 2500 B ≤ 50000

∴ The LP model is given as :

max: 1.180( 420000 A + 500000 B )

subject to : (a.) 7000 A + 2500 B ≤ 100000

(b.) 7000 A ≤ 70000

(c.) 2500 B ≤ 50000

4 0

3 years ago

One of your customers is delinquent on his accounts payable balance. you've mutually agreed to a repayment schedule of $630 per

larisa [96]

Answer:

27.14 months

Explanation:

to calculate how long it will take to pay the loan, we can use an excel spreadsheet and the NPER function:

=NPER(rate,payment,-loan)

payment = 630
rate = 1.03
loan balance = 14,850

=NPER(1.03%,630,14850) = 27.14 months

5 0

3 years ago

Joe quits his computer programming job, where he was earning a salary of $65,000 per year, to start his own computer software

Verizon [17]

Answer:

The accounting cost and the economic cost associated with Joe's computer software business is $75,00 and the $165,000 respectively.

Explanation:

The computation of the accounting cost and the economic cost is shown below:

Accounting cost = Other Expenses + Salary paid to himself

= $35000 + $40,000

= $75,000

Economic cost = Accounting cost + Salary expense + Rent expenses

= $75,000 + $65,000 + $25,000

= $165,000

8 0

3 years ago

An asset was acquired on October 1, 2021, for $78,000 with an estimated five-year life and $13,000 residual value. The company u

trasher [3.6K]

Based on the information given the gain or loss if the asset was sold on March 31, 2024 is $6,000 gain.

Depreciation per units= (Original cost - Residual value) ÷ (Estimated production units)

Depreciation per units= ($78,000 - $13,000) ÷ 20,000 units

Depreciation per units= $65,000 ÷ 20,000 units

Depreciation per units= $3.25 per units

Accumulated depreciation=(500 units × $3.25)+( 3,000 units × $3.25)+(3,500 units × $3.25)+( 1,000 units × $3.25)

Accumulated depreciation= $1,625 + $9,750 + $11,375 + $3,250

Accumulated depreciation= $26,000

Book value= Acquired value of an asset - Accumulated depreciation

Book value= $78,000 - $26,000

Book value= $52,000

Gain or Loss= Sale value - Book value

Gain or Loss= $58,000 - $52,000

Gain or Loss= $6,000 gain

Inconclusion the gain or loss if the asset was sold on March 31, 2024 is $6,000 gain.

Learn more about depreciation here:brainly.com/question/14705084

3 0

2 years ago