I think its warranties hope this helps
Answer:
A higher operating income will result under absorption costing
Explanation:
If manufacturing production exceeds units sold there will be an increase in inventory and increases in inventory cause income to be higher under absorption costing than under variable costing.
Under variable costing, as its name suggests, only variable production costs are assigned to inventory and cost of goods sold.
Under absorption costing, normal manufacturing costs are considered product costs and included in inventory.
<em>Recognize that a reduction in inventory during a period will cause the opposite effect. </em>
<em>Specifically, a portion of the contents of the beginning inventory would be transferred to expense commensurate with the decrease in inventory. </em>
<em>Since the inventory contains less under variable costing, expect expenses to be lower and income to be higher.</em>
Answer:
d. It implies that prices reflect all available information
Explanation:
Efficient Market hypothesis emphasizes upon the fact that stock prices are an outcome of released public information and assumes investors to be rational.
It points towards sensitivity of the market to the information made available and as per it, investors actions are an outcome of information that becomes available to them.
It means securities are correctly priced which wipes out any possibility of earning arbitrage gains i.e buying a security at a low price and selling it at a higher price.
Answer:
The wage per hour must be paid in the second year is $11.021 per hour.
Explanation:
Please find the below for detailed explanations and calculations:
We have the real wage stipulated in the contract must be grown at 3% in second year in comparison to first year.
Thus, the nominal pay rise must grow at the higher rate than 3%, in the way that it may cover the effect from inflation to ensure real rise is 3% as agreed in the labor contract.
As a result: Nominal increase (%) = (1+ real increase rate) x CPI of second year in comparison to first year - 1 = (1+3%) x 1.07 -1 = 10.21%.
=> Wage per hour must be paid in the second year = Wage per hour in first year x ( 1 + Nominal increase) = 10 x (1 + 0.1021) = $11.021.
Ethically probably harder,
