In some countries with very high inflation rates, citizens tend to spend their money as fast as they receive it in order to keep it from losing any more of its value. Under these conditions, money is said to lack stability
Explanation:
In most situations, two main factors of a high inflation rate are present in a national economy, which in most countries at the very most. Firstly, an increase in consumer spending in comparison to supply could lead to high inflation. The prices rise when more people fought about fewer goods.
Price stability ensures that excessive inflation and deflation are prevented.
Inflation represents an increase in the overall value for money and purchasing power of products and services within an economy over a prolonged period of time. Deflation is a fall over a longer period of time in the overall price cost for goods and services.
Answer:
See explanation section
Explanation:
Give
The cost value for each of the inventory item is as follows:
Product Cost Price
D $88
E $94
F $94
G $94
H $59
I $42
Now, we determine the net realizable value for each of the product:
Net Realizable Value = Selling price - Cost to compete - Selling costs
Product Net Realizable Value
D $93
E $73
F $70
G $41
H $82
I $47
Now, using the LCNRV (Lower of cost or Net Realizable Value) rule, the proper unit value for balance sheet reporting purposes at December 31, 2020, for each of the inventory items -
Product LCNRV
D $88
E $73
F $70
G $41
H $59
I $42
Answer:
Predetermined manufacturing overhead rate= $8.3 per machine hour
Explanation:
Giving the following information:
Total machine-hours 80,000
Total fixed manufacturing overhead cost $416,000
Variable manufacturing overhead per machine-hour $ 3.10
<u>First, we need to calculate the predetermined overhead rate:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (416,000/80,000) + 3.1
Predetermined manufacturing overhead rate= $8.3 per machine hour
Answer:
c. reserves increase by $100 million and the money supply increases by more than $100 million
Explanation:
Based on the information given in a situation where a FRACTIONAL-RESERVE BANKING SYSTEM has no availability of EXCESS RESERVES and no CURRENCY HOLDINGS, which means that if the central bank buys BONDS that worth $100 million, the RESERVES will tend to INCREASE by the amount of $100 million while the MONEY SUPPLY on the other hand will INCREASES by more than $100 million.
