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Yanka [14]
2 years ago
11

Purchasing Power Parity (PPP) theory states that A. the exchange rate between currencies of two countries should be equal to the

ratio of the countries' price levels. B. as the purchasing power of a currency sharply declines (due to hyperinflation) that currency will depreciate against stable currencies. C. the prices of standard commodity baskets in two countries are not related. D. both a) and b)
Business
1 answer:
natulia [17]2 years ago
8 0

Answer:

The correct answer is A and B

Explanation:

PPP stands for Purchasing Power Parity, which is a theory that states or define as the exchange rate among the currencies of 2 countries, which should be equal to the ratio of the price levels of the countries.

It is grounded on The Law of One Price, which states all the identical goods  have the same price.

As the purchasing power of the currency which sharply decrease because of hyperinflation, that currency will be depreciated against the stable currencies.

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Gladstone Company tracks the number of units purchased and sold throughout each accounting period but applies its inventory cost
Ilya [14]

Answer:

  • <u>Sale, March 14 (1,380 units) cost of goods sold = $117,200</u>
  • <u>Sale, August 31 (1,550 units ) cost of goods = $96,100</u>
  • <u>Ending inventory = 1,800 units</u>

<u>Explanation</u>:

a. Cost Of Goods Sold Using LIFO

<u>1. Sale, March 14 (1,380 units)</u>

- from May 1 purchase)

1,130 units at $90= 1130*90= $101,700

+

from January 30 purchase

250 units from 2,150 units at $62 = $15,500

Total= 15,500+101,700= $117,200

<u>2. Sale, August 31 (1,550 units )</u>

- from January 30 purchase

1,550 units from 1900 units leftover

1550 at $62 = 1550*62= $96,100

b. Ending inventory

350 units leftover from January 30 purchase + 1,450 units of Beginning inventory, January 1 = 1,800 units

5 0
3 years ago
As it relates to inventory, a buyer's time expended to prepare the purchase order for more material is considered a(n) ____ cost
OLga [1]

Answer:

"Ordering" is the correct solution.

Explanation:

  • Ordering expenses are incurred in purchasing a new shipment of manufactured goods. This would include expenditures for the attempting to place of a purchase agreement, cost savings for the evaluation including its batches expected to receive, ends up costing for documentary evidence, etc.
  • The cost of ordering correlated negatively with either the cost of transport. This appears to mean because the much more purchases a business location including its providers, the significantly higher the ordering costs will indeed be.
3 0
2 years ago
The Reynolds Corporation buys from its suppliers on terms of 2/19, net 50. Reynolds has not been utilizing the discounts offered
harina [27]

Answer:

23.68%

Explanation:

The computation of the cost of not taking a cash discount is shown below:-

Cost of not taking a cash discount = [Discount percentage ÷ (100% - Disc.%)] × (360 ÷ (Final due date - Discount period))

= (2% ÷ 98%) × (360 ÷ (50 - 19))

= 2.04% × 11.61

= 23.68%

Therefore for computing the cost of not taking a cash discount we simply applied the above formula.

4 0
3 years ago
Action learning uses challenging, structured outdoor activities, which include difficult sports.A. TrueB. false
mixas84 [53]

Answer: The answer is True.

Explanation: Action learning uses challenging, structured outdoor activities, which may include difficult sports such as dog-sledding or mountain climbing. ... Employees are most likely to learn when the training is linked to their current job experiences and tasks.

6 0
3 years ago
Creditors are interested in the times interest earned ratio because they want to
Pavlova-9 [17]
Creditors are interested in the times interest earned ratio because they want to "<span>have adequate protection against a potential drop in earnings jeopardizing their interest payments".
</span>

The times interest earned ratio is also known as interest coverage ratio, which measures the capacity of an association to pay its obligation commitments. The proportion is generally utilized by banks to discover whether an debt borrower can bear to assume any extra obligation. It might be figured as either EBIT or EBITDA divided by the aggregate interest which is payable.
7 0
3 years ago
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