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3 years ago

When producers do not have to pay the full cost of producing a product, they tend to?

1 answer:

6 0

When producers do not have to pay the full costs of producing a product, they tend to OVER PRODUCE THE PRODUCT BECAUSE OF A SUPPLY SIDE MARKET FAILURE.
When producers are required to pay less than their cost of production for manufacturing their products they tend to produce more products, this is because, producing more products will cost less in production costs compare to if they are required to pay the full cost of production.

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brainly Stuart Manufacturing Company was started on January 1, year 1, when it acquired $89,000 cash by issuing common stock. St

HACTEHA [7]

Answer:

Stuart Manufacturing Company

Assets = $107,200

Explanation:

a) Data and Calculations:

Cash Account

Common stock $89,000

Furniture (32,000)

Equipment (40,000)

Salaries (12,000)

Wages (21,000)

Raw materials (26,000)

Sales 72,000

Cash balance $30,000

Inventory:

Cost = $26,000

Units produced = 10,000 units

Cost per unit = $2.60 ($26,000/10,000)

Cost of goods sold = 8,000 * $2.60 = $20,800

Ending inventory = 2,000 * $2.60 = $5,200

Sales Revenue = 8,000 * $9 = $72,000

Assets:

Cash $30,000

Ending inventory 5,200

Furniture 32,000

Equipment 40,000

Total $107,200

b) An asset is something that brings in future cash flows to the business entity. It is made up of Cash and Cash Equivalents, Inventories, Property, Plant, Equipment, and other business investments. Assets are funded from finance provided by creditors and the equity owners, and they generate economic values.

5 0

3 years ago

An activity variance is due to the difference between the level of activity used in the flexible budget and the actual level of

andrezito [222]

Answer:

a. True

Explanation:

The Activity variance is based on the difference in actual level of activity used in flexible budget and the level of activity accounted in the planning or master budget

8 0

3 years ago

If the marginal propensity to save is 0.2 in an economy, a $20 billion rise in investment spending will increase:

faltersainse [42]

Answer:

D. Consumption by $80 billion.

Explanation:

Marginal propensity to Save = 1 / MPS

= 1 / 0.2

= 5

= $20 billion × 5

= $100 billion

= $100 - $20

= $80 billion

Therefore, a $20 billion rise in investment spending will increase consumption by $80 billion.

4 0

3 years ago

Which of the following is an example of money as a unit of account?

Savatey [412]

The answer is lending your bestfriend 25 dollars to buy a guitar.
Unit of costs is the amount incurred by a particular company to be able to produce, store and sell the number of the same products. In the given example. 25 dollars is the cost of the guitar or the unit of costs.

8 0

3 years ago

Monster music company provided music lessons to customers for $10,000, receiving $6,000 in cash and the rest on account. what is

prisoha [69]

The monster music company's revenue under the accrual basis of accounting is $10,000

What is the accrual basis of accounting?

Under the accrual basis of accounting, revenue is recognized when the goods have been delivered or services rendered regardless of when payment for goods or services is received.

The fact that Monster music company already provided the music lessons whose revenue is $10,000 means that it should recognize the revenue for the whole music lessons provided rather the portion whose cash payment has been received

Find out more about accrual accounting on:brainly.com/question/11312217

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8 0

2 years ago