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3 years ago

Hyperinflations tend to occur when

Business

1 answer:

sladkih [1.3K]3 years ago

8 0

Answer:

C) Central banks finance large government budget deficits

Explanation:

Hyperinflation is when general price level rise at accelerating high rates. This leads to loss in real value of currency, people tend to substitute it by other stable currency holdings.

An important cause of Hyperinflation is Deficit Financing. This means government generating funds, by bank issuing (printing) new currency. It is done to cover the deficit, the excess of government expenses over its revenues.

Increase in currency money supply, by borrowing from central bank - raises Aggregate Demand & general price level at a very rapid rate, i.e Hyperinflation

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Although there are some clear disadvantages associated with extending credit to customers, such as bad debt costs, most managers

WITCHER [35]

Answer:

The primary advantage they refer to is additional sales revenue.

Explanation:

Extending credit to customers is generally done through use of credit cards these days. This does allow the customers to buy goods and services on credit and pay later for those goods.

Offering credit is beneficial for both the shopkeepers or merchants and the buyers. Customers do not have to pay cash (as they can run out of cash at times), so they buy more and this increases the sales revenue for the merchants, which becomes the primary advantage for them and outweighs the costs.

5 0

4 years ago

During its first year of operation Mazer Manufacturing Company produced 2,000 units of inventory and sold 1,800 units. Mazer inc

Crazy boy [7]

Answer: The amount of gross margin Mazer would report if the company uses absorption costing is $1350.

Explanation:

Given that,

Mazer Manufacturing Company produced = 2,000 units of inventory

Units Sold = 1,800 units

Variable product cost = $4 per unit

Fixed manufacturing overhead cost = $2,500

Sales price of the products = $6 per unit

Fixed manufacturing cost per unit = $\frac{Total\ cost}{units\ produced}$

= $\frac{2500}{2000}$

= $1.25 per unit

Unit Product cost under Absorption costing = Variable product cost + Fixed manufacturing cost per unit

= 4 + 1.25

= $5.25

∴ Gross margin under Absorption costing = Sales Revenue - Cost of goods sold

= Units sold × sales price - Units sold × Unit Product cost under Absorption costing

= 1800 × 6 - 1800 × 5.25

= 10800 - 9450

= $1350

5 0

3 years ago

Albee Township’s fiscal year ends on June 30. Albee uses encumbrance accounting. On April 5, year 1, an approved $1,000 purchase

Mice21 [21]

Answer:

Encumbrances $1000

Reserved for encumbraces $1000

Explanation:

Encumbrance is in the debit because is the money that we have destined for the purchase and since we have to get the money from our funds Reserved for encumbrances is in the credit.

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3 years ago

Following ethical standards that have been outlined by the company you work for are___standards(apex)

Mashcka [7]

Answer:

D. organizational

Explanation:

You must focus on both your personal life and profession. Just got the question right on apex.

5 0

3 years ago

Companies that have become successful with a limited standard product offering often fall into the trap of subsequently broadeni

DiKsa [7]

Answer:

True

Explanation:

When a company successfully offers a product or few products to customers, it tends to expand the range of products it has to offer.

For a <u>company to increase its range of products successfully, it has to realize that it must make corresponding changes to its processes to accommodate the addition of new products.</u>

However <em>oftentimes, companies do not make the necessary changes to their process strategy when expanding their product offerings.</em>

8 0

4 years ago