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3 years ago

All of the following are guidelines for budgeting except:

Business

1 answer:

Serhud [2]3 years ago

8 0

Answer:

B. participatory approach budgets should be prepared using a top-down approach

Explanation:

Option A is incorrect because it is one of the significant guidelines for budgeting.

Option C is a budgeting guideline which helps to differentiate the actual and budgeted amounts.

Option D is an important element to attain the objectives through budgeting. Therefore, it is incorrect.

Option B is the answer as there is no option to prepare the budget using a top-down approach.

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Why does a minimum wage exist?

AleksandrR [38]

Answer:

A minimum wage exists so that when people are looking up their career field they see what they should get paid.

Explanation:

3 0

3 years ago

Read 2 more answers

A country is in the midst of a recession with real GDP estimated to be $4.5 billion below potential GDP. The government's policy

VARVARA [1.3K]

Answer:

a. The government needs to increase spending by $0.45 billion and decrease taxes by $0.5 billion.

b. The real GDP will fall short of potential GDP by $3.6 billion.

c. The real GDP will fall short of potential GDP by $4 billion.

d. If government overestimates MPC change in spending or taxes will be too small.

Explanation:

The GDP gap is $4.5 billion.

a. The marginal propensity to consume is 0.90.

Government spending multiplier

= $\frac{1}{1-MPC}$

= $\frac{1}{1-0.9}$

= 10

The government needs to increase spending by

= $\frac{GDP\ Gap}{Government\ spending\ multiplier}$

= $\frac{4.5}{10}$

= $0.45 billion

Tax multiplier

= $\frac{-MPC}{1-MPC}$

= $\frac{-0.9}{1-0.9}$

= -9

The government needs to decrease taxes

= $\frac{GDP\ Gap}{Tax\ multiplier}$

= $\frac{4.5}{9}$

= $0.5 billion

b. The marginal propensity to consume is 0.50.

Government spending multiplier

= $\frac{1}{1-MPC}$

= $\frac{1}{1-0.5}$

= 2

If the government increases spending by $0.45 billion,

The real GDP will increase by

= $Increase\ in\ spending\ \times\ Spending\ multiplier$

= $\$ 0.45\ \times\ 2$

= $0.9 billion

The real GDP will fall short of potential GDP by

= $4.5 billion - $0.9 billion

= $3.6 billion

c. Tax multiplier

= $\frac{-MPC}{1-MPC}$

= $\frac{-0.5}{1-0.5}$

= -1

If the government decreases taxes by $0.5 billion

The real GDP will increase by

= $$0.5\ billion\ \times 1$

= $0.5 billion

The real GDP will fall short of potential GDP by

= $4.5 billion - $0.5 billion

= $4 billion

d. If the government overestimates the value of the MPC, then its change in spending or taxes will be too small and real GDP will fall short of potential GDP.

4 0

3 years ago

The direct write-off method: multiple choice follows the expense recognition (matching) principle. Is not permitted under GAAP.

Lera25 [3.4K]

Answer: is permitted if results are similar to the allowance method

Explanation:

The direct write-off method is refered to as an accounting method whereby the uncollectible accounts receivable are being written off as bad debt. Here, the bad debts expense account will be debited while the accounts receivable will be credited.

The direct write-off method is permitted if results are similar to the allowance method. For the allowance method, it should be noted that an estimation of the bad debt future amount will be charged to the reserve account once the sale takes place.

4 0

3 years ago

Inacio Corporation uses the weighted-average method in its process costing system. Data concerning the first processing departme

lakkis [162]

Answer:

Option D , $15.12

Explanation:

Weighted-average method :

Materials

Units transferred to the next department = 10,300

Ending work in process:

Materials: 1,200 units × 90% = 1080

Equivalent units of production =10,300+1080= 11,380

Materials

Cost of beginning work in process inventory= $2,700

Costs added during the period = $173,900

Total cost (a) =$173,900+$2,700 = $176,600

Equivalent units of production (b)= 11,380

Cost per equivalent unit (a) ÷ (b) = $15.51

The cost per equivalent unit for materials for the month in the first processing department is closest to $15.51

3 0

3 years ago

At the present time, Perpetualcold Refrigeration Company (PRC) has 10-year noncallable bonds with a face value of $1,000 that ar

Assoli18 [71]

Answer:

The correct answer is 4.33%(approx)

Explanation:

According to the scenario, the given data are as follows:\

Face value = $1,000

Market price = $1,278.41

Coupon Rate = 11%

So Coupon Payment = $110

Years to maturity = 10 years

So, we can calculate the after tax cost of debt by using following method:

After Tax Cost of Debt = YTM × ( 1 - Rate of Tax)

Where, YTM = $\frac{C + \frac{F - P}{T} }{\frac{F + P}{2} }$

So, by putting the following value, we get

YTM = 0.0721

So by putting the value in formula, we get

After Tax Cost of Debt = 0.0721 × ( 1 - 0.4)

= 4.33% (approx)

6 0

3 years ago