It is to provide your clients a visual demonstration of their current financial situation, the raw numbers on where they are today, and what it would take for them to reach their goals and dreams.
Benefits of small amounts of inflation include more expansionary monetary policy, the placebo effect, and the facilitation of relative price changes.
<h3>What is meant by inflation?</h3>
Inflation is the term used to describe the rate of price rise for goods and services.
It is sometimes used to categorize inflation according to cost-push, demand-pull, and built-in factors.
The two most popular inflation measures are the Consumer Price Index and the Wholesale Price Index.
Inflation can be viewed favorably or badly depending on the perspective and rate of change.
Inflation may be advantageous for those who own tangible assets since it will raise the value of their holdings, such as real estate or goods that are kept in storage.
Inflation's primary causes include:
- Consumer-driven inflation
- Price-driven inflation
- more money available
- Devaluation
- increasing pay
- Regulations and policies
Benefits of Inflation: In order to meet increasing demand, production must increase. Additionally, debtors benefit from inflation because they can return their loans with funds that are less valuable than the funds they borrowed. This promotes borrowing and lending, which boosts expenditure on all levels once more.
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Answer:
c. Under applied $ 1,340
Explanation:
Computation of predetermined overhead rate
Estimated manufacturing overhead $ 594,960
Estimated direct labor hours 22,200 hours
Predetermined overhead rate per direct labor hour
$ 594,960 / 22,200 hours $ 26.80 per hour
Actual Direct Labor hours 22,150 hours
Applied overhead at predetermined direct labor rate
$ 26.80 * 22,150 hours $ 593,680
Actual overhead <u>$ 594,960</u>
Overhead under applied $ ( 1,340)
Answer:
A $3066000
Explanation:
The formula for cash received from customers is: opening receivables+net sales-closing receivables.
The rationale behind the formula is that opening receivables would have turned cash by year end since current asset last one year maximum.
=$241500+$3097500-$273000
=$3066000
