Answer:
U.S. Tax Burden on Cola:
The amount of the tax on a case of cola is $4 per case. Of this amount, the burden that falls on consumers is $1 per case, and the burden that falls on producers is ___$3______ per case.
The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers.
a. True
b. False
Explanation:
The tax burden on consumers, which is represented by the difference in the price of cola from $5 to $6 per unit is $1 ($6 - $5). However, the cash received by producers reduced by $3 from $5 to $2. This shows that the total tax burden on both consumers and producers is $4 ($1 + $3).
This represents a total tax burden of $4 or about 67% based on the new selling price of cola or 80% based on the old selling price of cola.
"The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers alone. This because the price of cola would have increased to $9 per unit. Since the demand for cola in this instance is elastic, this change in price would have caused a more than 80% change in the quantity demanded.
Answer:
Jul-01
Dr Retained Earnings $324,800
Cr Common stock dividend distributable $232,000
Cr Paid-in capital in excess of par value - Common stock 92,800
Explanation:
Preparation of the journal entry to record the dividend declaration is:
Jul-01
Dr Retained Earnings $324,800
(58,000 shares x 20% x $28)
Cr Common stock dividend distributable $232,000
(58,000 shares x 20% x $20)
Cr Paid-in capital in excess of par value - Common stock 92,800
(58,000 shares x 20% x $8)
Answer: false
Explanation:
The statement is false because cost leadership is not really sustainable as it's cost effective due to the maintenance charge required to keep them in a great care despite the low operational cost being runned by the organization
Answer:
Inflation refers to the general rise in price levels of goods and services in an economy.

2014 Inflation;

= 4.7%
2015

= 4.39%
2016

= 3.48%
2017

= 5.39%
Answer:
Centralized production processing facility considers top management as the apex of decision making.
In decentralized production processing the decision making is delegated to teams and multiple individuals.
Explanation:
Centralized facility:
Pros:
a. In centralized facility top management commitment helps in improved decision making
b. Allocation of budgets to improve production processes.
c. The process becomes a part of strategic planning.
d. Standardization of processes like Mcdonalds kitchen.
e. Lower costs
f. Better forecasting
Cons:
a. Lack of flexibility
b. In case of international chains customers may be dissatisfied with standardized procedures
c. No room for customization
Decentralized Facility:
Pros:
a. Flexibility
b. Customer oriented approach
c. lack of bureaucratic procedure
d. quick decision making
Cons:
a. No standardization
b. Every Team has its own benchmarking process to evaluate performance.
c. Costly
d. Planning, budgeting and forecasting is effected adversely.