All categories

2 years ago

Too little spending in an economy often leads to:__________

Business

1 answer:

vlabodo [156]2 years ago

7 0

Too little spending in an economy often leads to: Recession

A recession is an important, widespread, and a very long downturn in any economic activity. Because recessions generally lasts for six months and more, one common rule of thumb is that two consecutive quarters of decline in a country's Gross Domestic Product will constitute a recession.

Economists which includes those at the National Bureau of Economic Research defines the recession as an economic contraction which starts at the peak of the expansion that preceded it and also ends at the low point of the ensuing downturn.

To know more about recession here:

brainly.com/question/14735206

#SPJ4

You might be interested in

Greenwood Company manufactures two products; 15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwid

lbvjy [14]

Answer:

1) Plant-wide overhead rate = Total estimated overhead ÷ Direct labor hours

= $728,900 ÷ 10,000

= $73 per DLH

2) Product Y

manufacturing overhead cost = $73 × 8,700 = $635,100

Product Z

manufacturing overhead cost = $73 × 1300 = $94,900

3) Machining ⇒ $227,000 ÷ 11,000 = $21 per MH

<h2>Explanation:</h2>

Using ABC

Step 1: Identify cost activities and their cost drivers

- Machining ⇒ Machine hours

- Machine Setups ⇒ No. of setups

- Production design ⇒ No. of products

- General factory ⇒ Direct Labor hours

Step 2: Assign overhead costs to activities identified

- Machining ⇒ $227,000

- Machine Setups ⇒ $153,900

- Production design ⇒ $91,000

- General factory ⇒ $257,000

Sum = $728,900

Step 3: Calculate Total Estimated Cost Driver Activity

Machining ⇒ 11,000 MHs

- Machine Setups ⇒ 270 setups

- Production design ⇒ 2 products

- General factory ⇒ 10,000 DLHs

Step 4: Calculate overhead rates

- Machining ⇒ $227,000 ÷ 11,000 = $21 per MH

- Machine Setups ⇒ $153,900 ÷ 270 = $570 per setup

- Production design ⇒ $91,000 ÷ 2 = $45,500 per product

- General factory ⇒ $257,000 ÷ 10,000 = $26 per DLH

Step 5: Apply overheads to product

Product Y

- Machining ⇒ 8,700 × $21 per MH =$182,700

- Machine Setups ⇒ 60 × $570 per setup = $34,200

- Production design ⇒ 1 × $45,500 per product = $45,500

- General factory ⇒ 8,700 × $26 per DLH = $226,200

Sum = $488,600

Product Z

- Machining ⇒ 2,300 × $21 per MH =$48,300

- Machine Setups ⇒ 210 × $570 per setup = $119,700

- Production design ⇒ 1 × $45,500 per product = $45,500

- General factory ⇒ 1300 × $26 per DLH = $33,800

Sum = $243,700

Using Plant-wide overhead

Plant-wide overhead rate = Total estimated overhead ÷ Direct labor hours

= $728,900 ÷ 10,000

= $73 per DLH

Product Y

manufacturing overhead cost = $73 × 8,700 = $635,100

Product Z

manufacturing overhead cost = $73 × 1300 = $94,900

5 0

4 years ago

Before considering a net operating loss carryforward of $81 million, Fama Corporation reported $200 million of pretax accounting

andre [41]

Answer: $35 million (nearest whole million)

Explanation:

To calculate the current year's tax Payable we will start by ascertaining the Net Taxable income.

Fema Corporation did not account for the net operating loss carryforward of $81 million in the $200 million pretax accounting and taxable income for the current year so we have to do that.

Doing that would be,

= $200 million - 81 million

= $119 million

This is the Net Taxable Income.

We will then use the NEW tax rate which was effected immediately to determine the new Tax Payable,

= $119 million * 0.29

= $34.51 million

= $35 million (nearest whole million)

5 0

3 years ago

The worst possible consequence of conflict is ______.

Afina-wow [57]

Violence is the worst possible consequence of conflict.
hope this helps!

6 0

3 years ago

Read 2 more answers

A company's scope defines the products and markets on which it will concentrate.True or false?

serious [3.7K]

Answer:

The statement is: True.

Explanation:

A company's scope determines which sector of the market they will focus on and in what product specifically. For new businesses, it is recommended to engage in the production of one service only so the company can have enough control of it but the organization's goal should be to diversify as long as the firm grows and starts earning stable revenues.

8 0

3 years ago

Another one.... TRUE OR FALSE A debit is the same thing as a deposit.

ololo11 [35]

Answer:

false

Explanation:

6 0

3 years ago