Answer:
a. rightward
b. MSB
c. increase
Explanation:
Externalities are defined as consumption, production and investment decisions made by individuals, households and companies and that affect third parties that do not participate directly in these transactions. Sometimes those indirect effects are minuscule. But when they are large, they can be troublesome; That is what economists call "externalities." Externalities are one of the main reasons that lead governments to intervene in the economy.
When there are externalities, indirect effects are produced that affect the consumption and production opportunities of third parties, but the price of the product does not reflect those externalities. Therefore, private returns and costs are different from those assumed by society as a whole
.
Answer:
absorption income higher by $60000
Explanation:
given data
inventory on hand = 2,000 units
Variable costs = $100 per unit
fixed manufacturing costs = $30 per unit
to find out
higher net income of what amount
solution
we know that Absorption cost and variable cost are different in their treatment of the fixed manufacturing costing
so we use of absorption cost that carry over in fix cost into ending inventory is here
absorption cost that carry over = fixed manufacturing costs × inventory on hand
absorption cost that carry over = $30 × 2000
absorption cost that carry over = $60000
so that here this amount is use for variable costing and absorption income higher by $60000
Answer: Examining the construction work orders supporting items capitalized during the year.
Explanation:
When the Auditors start to examine the work orders that support the Capitalization of items during the year, they will come across the work order for Painting the Warehouse.
Painting a warehouse is not to be capitalized if it had nothing to do with getting the warehouse ready for use by the company.
Answer:
-$976
Explanation:
Adison winery has beginning long term debt of $41,436 and ending long term debt of $46,883
The beginning and ending total balance were $51,283 and $56,480
The company paid an interest is $4,471
Therefore the company cash flow to creditors can be calculated as follows
= $4,471-($46,883-$41,436)
= $4,471 - $5,447
= -$976
Hence the operating cash flow to the creditors is -$976
Answer:
Option C Electricity used to run its factories
Explanation:
The reason is that the direct costs are those that are easily attributable to the unit product and the costs that are not directly attributable to the unit product are indirect cost.
So here the salary paid to workers are directly attributable cost because the time taken to produce one unit in modern industry is fixed and determinable so the wage per unit is also fixed. It means it is a direct cost.
The leather used for a unit product of shoe is also determinable and fixed the product and its costs as well. This means we can easily allocate the cost to the unit shoe so it is also direct cost.
Likewise the cost of machines per unit in modern day industries is also determinable. If the machine life is 100,000 units and its price is $200,000 then the cost attributable to unit product of shoe is $2 per unit.
The electricity cost is not attributable to unit product of shoe as this electricity is used for other operations in the factory and this throws cat among the piegons because it is difficult to find how much a product utilizes electricity because their are number of different product produced in the factory and each utilizes electricity differently. So it is not directly attributable and is an indirect cost.
