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3 years ago

What does the consumer price index measure?

Business

2 answers:

ohaa [14]3 years ago

4 0

The answer is:

an index determined by measuring the price of standard goods bought by urban consumers

aalyn [17]3 years ago

3 0

Consumer price index measures change in the price level consumer goods and services.

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10) Before the year began, Murphy Manufacturing estimated that manufacturing overhead for the year would be $175,500 and that 13

QveST [7]

Answer:

Explanation:

What is given:

Budgeted overhead = 175,500

Budgeted labour hours = 13,000

So Budgeted overhead per hour = 175500/13000 = 13.5

Actual labor hours = 14,500

Amount of manufacturing overhead allocated for the year based on direct labour hours = 14,500*13.5 = 195,750

4 0

3 years ago

The basic determinant of the transactions demand for money is the multiple choice 1 interest rate. level of nominal GDP. reserve

-BARSIC- [3]

Answer:

1. level of nominal GDP.

2. interest rate.

3. horizontal sum of the transactions demand for money and the asset demand for money.

4. at the intersection of the total demand for money curve and the supply of money curve.

5. the equilibrium interest rate will rise.

Explanation:

In economics or financial accounting, money can be defined as any asset used by an individual or business entity to make purchases of goods and services at a specific period of time.

Simply stated, money refers to any asset which can be used to purchase goods and services by customers.

This ultimately implies that, money is any recognized economic unit that is generally accepted as a medium of exchange for goods and services, as well as repayment of debts such as loans, taxes across the world.

Additionally, the rate at which an asset can be used to purchase any goods or services refers to its liquidity. Thus, liquidity is a quality or characteristics of money as a medium of exchange. Therefore, money is a generally accepted medium of exchange around the world.

The three (3) main functions of money all over the world are;

I. Medium of exchange.

II. Unit of account.

III. Store of value.

Some of the characteristics of money includes the following statements;

1. The basic determinant of the transactions demand for money is the level of nominal GDP.

2. The basic determinant of the asset demand for money is the interest rate.

3. Total money demand is the horizontal sum of the transactions demand for money and the asset demand for money.

4. The equilibrium interest rate in the money market is determined at the intersection of the total demand for money curve and the supply of money curve.

5. If there is an increase in the total demand for money, the equilibrium interest rate will rise.

6 0

3 years ago

A company known for its high-quality watches and clocks introduces a line of well-designed pocket watches to increase its market

timama [110]

Answer: Market Cannibalization

Explanation: The pocket watch line is having the market cannibalization which is also known as the corporate cannibalism effect on the company's wrist watches.

Market Cannibalization refers to a reduction in sales of a particular old product which is usually as a result of a company's introduction of a new product.

The introduction of the new product displaces the older products mostly because both products have thesame customer base and also perform similar functions.

It is essential to note that despite the increase in sales of the new product, the company's market share experiences no increase but a decrease which is due to the sales loss of the older product.

8 0

3 years ago

Slater Mines just called its outstanding bonds at a call price of $1,025. The bonds have a conversion price of $33.33 and a par

Kazeer [188]

Answer:

In response to this call, the bondholders should Accept the call as call price exceeds the conversion value

Explanation:

Number of shares (if bonds are converted) = par value/conversion price = 1,000/33.33 = 30 shares

Current value of 30 shares = 30*current share price = 30*33.10 = $993.10

Call price of $1,025 is greater than the current value of converted bonds, so bondholders should accept the call

5 0

3 years ago

An apartment building contains twenty units. Each unit rents for $900 per month. The vacancy rate is 5%. Annual expenses are $17

expeople1 [14]

Answer: 12.48%

Explanation: Rate of Return (RoR) refers to the net profit or loss on an investment over a specified period expressed as a percentage of the investment's initial cost.

Number of apartment = 20

Monthly rental = $900

Vacancy rate = 5%

Annual expenses :

$17,500 - maintenance fee

$7,200 - Insurance

$7,500 - taxes

$6,400 - utilities

$7,500 - mortgage debt

10% of gross effective income- management fee

$1,170,000 - initial investment.

Gross income = 20*$900*12 = $216,000

Vacancy rate = 0.05*$216,000 = $10,800

Effective gross = gross income - Vacancy rate = $205,200

Management fee = 0.1 * $205,200 = $20,520

Total annual expenses = $20,520+$7,500+$7,200+$6,400+$17,500 = $59,120(excluding mortgage debt)

Net profit / loss = effective gross income - total annual expenses.

Net profit /loss = $205,200-$59,120 = $146,080.

RoR = Net profit/loss ÷ initial investment

RoR = ($146,080 ÷ $1,170,000) * 100

0.1248 * 100 = 12.48%

7 0

4 years ago