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3 years ago

What is a(n) economic model?

Business

1 answer:

elixir [45]3 years ago

3 0

Explanation:

It is an simplified version which makes us to understand and observe the "economic behavior"

It purely uses mathematical concepts and simplify the information and show only important or highlighting information.

You can alternatively use "economic theory" instead of "economic model"

A good economic model, will make the user to understand the complex information with the help of key pointers.

There are 2 broad classification of Economic model:

1. Theoretical

2. Empirical.

The commonly used economic model is the classic model, which constitutes of "The law of demand and the law of supply"

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What is the Output Effect???

Definition: The situation in which an increase in the price of one input will increase a firm's production costs and reduce its level of output, this reducing the demand for other inputs; conversely for a decrease in the price of the input.

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4 years ago

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2 years ago

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3 years ago

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3 years ago

Hi-Test Company uses the weighted-average method of process costing to assign production costs to its products. Information for

aev [14]

Question Continuation

1. The number of physical units that were transferred out and the number that are in ending work in process inventory.

2. The number of equivalent units for materials and conversion for the month.

3. The cost per equivalent unit of materials and conversion for the month.

Answer:

See explanation below

Explanation:

1. .

Units to account for is given as:

Beginning (Work in Process) ------_--------- $2,000

Unit Started at the beginning (April) ----- $28,000

Total = $2,000 + $28,000 = $30,000

Calculating total units accounted for.

Units completed and transferred out ------- $23,000

Ending (Work in Process) ------------------------ $7,000

Total Units = $23,000 + $7,000 = $30,000

Units completed and transferred out

=> $23,000 (units) => 100% (% Materials) => $23,000 (EUP Materials) => 100% (% Conversion) => $23,000 (EUP Conversion)

Units of ending work in process

=> $7,000 (units) => 100% (% Materials) => $7,000 (EUP Materials) => 40% (% Conversion) => $2,800 (EUP Conversion)

Equivalent Units of Production

=> $30,000 (units) => 100% (% Materials) => $30,000 (EUP Materials) => (% Conversion) => $25,800 (EUP Conversion)

Cost per equivalent units of production

Cost of beginning work in process => $45,000 (Direct materials) => $56,320 (conversion)

Cost incurred during this period => $375,000 (Direct materials) => $341,000 (conversion)

Total Cost => $420,000 (Direct materials) => $397,320 (conversion)

Equivalent Units of Production => $30,000 (Direct materials) => $25,800 (conversion)

Cost per equivalent unit of production => $14.00 (Direct materials) => 15.40 (conversion)

Cost per equivalent unit of production is calculated by Total Cost / Equivalent unit of production

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4 years ago