Answer:
b) Considered to be a direct variable cost
Explanation:
Direct costs are expenditures that can be traced to a specific product, project, or service. It is a cost component that arises due to the production of a particular good or service as opposed to a general expense. Direct costs contrast indirect cost that covers a variety of items, such as administration.
Variable costs are the expenses that change with production volume. An increase in production leads to an increase in variable costs. Variable costs, therefore, have a direct relationship with the output level.
Belts, in this case, are a direct variable cost because
- The belt expense is traceable directly to the production of cars. It is a cost incurred only when a car is being produced.
- The cost varies with the number of cars produced. The expenses will change with changes in the production of cars.
Answer:
The _purchasing power__ states that exchange rates between any two currencies will adjust to reflect changes in the price levels of the two countries.
Explanation:
<span>The debate about health-care reform, on both the Left and the Right, revolves almost entirely around changing the way we pay for health care. Progressives advocate government-run, single-payer monopsonies, whereas conservatives advocate consumer choice among private insurers.</span>
Answer:
As a Medium of Exchange
Explanation:
The four functions of money are:
- As a Medium of Exchange
- As a Measure of Value
- As a Store of Value
- As a standard of Deferred Payment.
As a Medium of Exchange
Money as a medium of exchange has its most important role of facilitating the exchange of goods and services. Hitherto before the advent of money. Trade by Barter was the only means of conducting transactions. The use of money in the exchange of gods and services solved the major difficulty encountered with the barter system, which his "Double coincidence of wants".
Money by performing its most traditional role is accepted by all irrespective of whether they need each others good or services.
However to fulfill this role or function, Money has to be generally acceptable, portable, divisible, durable, stable in value and homogeneous.
