Answer:
The correct answer is letter "D": interfere with the rationing function of prices.
Explanation:
While talking about price floors and price ceiling, <em>the rationing function of prices</em> refers to the fact that both governmental measures are imposed to protect sellers and buyers from unfair practices driven by supply and demand. Thus, price floors protect producers from prices that could go below their production costs and price ceilings protect buyers from prices that could be set above their income.
The rationing function of prices can be also understood as the measures taken to discourage demand to keep resources to use them over a determined period.
Answer: Variable cost; should be considered
Explanation:
For a nail salon, the costs associated with the purchase of nail polish and other products like polish remover and disposable flip flops are examples of variable costs. These should be considered when building a MCS.
Variable costs are the costs that varies with production. They are the opposite of fixed costs which are fixed. The nail polish and other products like polish remover and disposable flip flops are variable costs because the amount that'll be bought depends on the available customers and therefore isn't fixed.
Answer: gains or losses are recognized in their entirety.
Explanation:
When boot is involved in an exchange having commercial substance, we should note that boot in this scenario refers to cash.
We should note that when cash is involved in an exchange that has commercial substance, it's either a gain or loss is made.
Therefore, the correct option is B.
Answer: Cross price elasticity is - 0.12
Explanation:
Cross price elasticity measures the responsiveness of quantity demanded of good a to a change in any of its related variable such as good b.
Given,
Pa=6, Pb=3, and M=30,
So, cross price elasticity is given by
Since, cross price elasticity is negative it means that good a and good b are complements to each other.
Answer:
Explanation:
$100,000 debit to the Equipment asset account because you are recording the actual original cost of the equipment (as is required by the Cost Principle of Depreciation). You should also credit the Accumulated Depreciation: Equipment account for $75,000 to show that the equipment has already depreciated for this amount.
