Answer:
Explanation:
If the Boskin Commission's estimate was right and consumer price index overstated inflation by 1.1% every year, this is what we can derive about REAL GDP PER CAPITA and GENERAL LIVING STANDARDS IN THE UNITED STATES:
(A) Real Gross Domestic Product per Capita is the total (gross) production per head or per person (per capita) within (domestic) an economy; after accounting or adjusting for inflation. Before adjusting for inflation, we have the Nominal GDP. So the term "real" shows that the value has accounted for inflation. If inflation is positive in the economy, then Real GDP figure will be less than Nominal GDP figure. I hope you understand this background information.
So if consumer price index is overstating inflation, real GDP per capita will be higher than it is perceived/calculated to be, in those years
(B) The general standard of living (which is affected by consumer price index) would also be higher than perceived or calculated.
Note here that the 'general' standard of living is a measure that sums up living standard 'per capita'.
Answer: Demand is Unit - Elastic over this price range.
Explanation:
When total revenue remains the same over various price level then the demand curve is unitary elastic.
Unit-Elastic demand - It depicts a demand curve which is perfectly responsiveness to changes in cost. That is, the amount of demand changes as indicated by a similar percentage changes in prices.
A demand curve with an elasticity of 1 is called as unitary elasticity of demand.
Answer:
The payback period for this project is 2.43 years.
Explanation:
Elmer Sporting Goods is getting ready to produce a new line of golf clubs by investing $1.85 million.
The investment will result in additional cash flows of $525,000, $812,500, and 1,200,000 over the next three years.
The payback period is the time it takes to cover the investment to be covered by returns.
The investment cost remaining in the first year
= $1,850,000 - $525,000
= $1,325,000
The investment cost remaining in the second year
= $1,325,000 - $812,500
= $512,500
The third year payback
= 
= 0.427
The total payback period
= 2.43 years
Answer:
$0
Explanation:
Scott Company must record the warranty expense and liability regarding the products sold during the years that they occur. For example, the following journal entry must be made to record the warranty expense for year 1:
Dr Warranty expense 25,000
Cr Warranty liability 25,000
During year 2, they will record the warranty expense for that year:
Dr Warranty expense 20,000
Cr Warranty liability 20,000
That means that during year 3, the only warranty expense recorded will be the one related to the goods sold during that year.
Answer:
a. At lower levels, management have fewer controllable costs
Explanation:
The opposite is true, lower-level management have more controllabe costs than higher level management because top management focuses on the general strategy of the firm, while lower management focuses on the specific production processes.
It is in these specific production processes that many controllable costs arise. A production line supervisor (part of lower-level management) can directly control some variable costs such as energy used, amount of input, or even work hours.
