Answer:
A) The correct answer is B. The per unit cost of production in this economy is $0.10.
B) The correct answer is B. The per unit cost of production will rise by about 30 percent.
C) The correct answer is B. The demand curve would shift to the right.
Explanation:
Since an economy is employing 2 units of capital, 5 units of raw materials, and 8 units of labor to produce its total output of 640 units, and each unit of capital costs $ 10, each unit of raw materials, $ 4, and each unit of labor, $ 3, to determine the per unit cost of production in this economy, the per unit cost of production if the per unit price of raw materials rises from $ 4 to $ 8 and all else remains constant, and to determine how the demand or aggregate supply curve will respond, the following calculations must be made:
A) 2 x 10 + 5 x 4 + 8 x 3 = 20 + 20 + 24 = 64
64 / 640 = 0.10
B) 2 x 10 + 5 x 8 + 8 x 3 = 20 + 40 + 24 = 84
64 = 100
84 = X
84 x 100 / 64 = X
8400 / 64 = X
131.25 = X
Answer:
The amount of uncollectible accounts is calculated as follows:
Amount of uncollectible accounts to be adjusted = 6% * Account receivables
= 6% * $138,500
=$8,310
Therefore, amount of uncollectible accounts is $8,310.
Bad debt Expenses = Opening balance of allowance for doubtful account (Credit balance) - Uncollectible account
Bad debt Expenses = $8,310 - $1,005
Bad debt Expenses = $7,305
The journal entry to record allowance for bad debts is as follows:
Account Titles and Explanation Debit Credit
Bad debt Expenses $7,305
Allowance for doubtful account $7,305
(To record adjusting entry for bad debt)
Some examples of government legislation in the united states which is aimed at protecting consumers include the following.
- Federal Food, Drug, and Cosmetic Act,
- Fair Debt Collection Practices Act
- the Fair Credit Reporting Act
- Truth in Lending Act
- Fair Credit Billing Act
- The Gramm–Leach–Bliley Act
<h3 /><h3>How does Government protect Consumers?</h3>
Government provide legislation which helps in protecting consumers and their right.
These legislation ensures that producers and manufacturers do not exploit the consumers for lack of options.
The government does this by enacting laws that guarantees consumer protection thereby regulating the excesses in the market.
Learn more about consumer rights at brainly.com/question/27317480
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Answer:
Audit Risk and Materiality
These two concepts have an inverse relationship. When the materiality level is set low, the audit risk envisaged by the auditor is on the high side. When the materiality level is set high, the audit risk as perceived by the auditor is on the low side.
But, what exactly is materiality? Materiality refers to the basis that can change or influence the judgment of a reasonable person arising from a quantitative and qualitative omission or misstatement of a fact. And audit risk refers to the risk of material misstatement in the financial statements presented by a company.
Explanation:
The risk of material misstatement in the financial statements is the reason that professional auditors design their audit procedures to reduce the audit risk to an acceptably low level. This implies that auditors gather more audit evidence when the materiality is set to a low level, showing that audit risk has increased and vice versa.
