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V125BC [204]
3 years ago
13

In the recent years, prices of basic food commodities such as corn, rice, and wheat have increased sharply. A recent article in

the Wall Street Journal states that Chinese authorities are concerned that escalating prices will cause inflation and be followed by civil unrest. (Source: Wall Street Journal, February 20, 2011) If the Chinese government sets a price ceiling below the equilibrium price, the result will be I. an increase in the quantity demanded. II. a decrease in the quantity supplied. III. a shortage.
Business
1 answer:
TiliK225 [7]3 years ago
6 0

Answer:

I, II and III.

Explanation:

Price ceiling refers to the price control policy that is used by the government to protect the customers who are not able afford goods at the prevailing price.

If government of a nation sets a price ceiling below the equilibrium price level then this will increase the quantity demanded for the product because now goods become more affordable to the consumers and decreases the quantity supplied because it will become less profitable for the producers.

Hence, the demand for goods exceeds the supply of goods, this will create a shortage of goods in an economy.

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You want to invest some money today to ensure you have exactly $50 thousand in 6 years to use as the down payment on a house. Yo
Naddik [55]

Answer:

True

Explanation:

STRIPS are zero coupon bonds, and the advantage of them is that they allow an investor to know exactly how much money they will receive at a future date.

The investor purchases the STRIPS at a discount value, which we are not told here. E.g. assuming that the discount rate is 5% (similar to (4), the price of the STRIPS = $50,000 / (1 + 5%)⁶ = $37,311.

5 0
3 years ago
Prior to adjustment at August 31, Salary Expense has a debit balance of $322,200. Salaries owed but not paid as of the same date
Phantasy [73]

Explanation:

The Journal entry is shown below:-

a. Salary Expense Dr,             $2,550

          To salaries payable                $2,550

(Being accrual of salary is recorded)

b. Income summary Dr,           $324,750

        To Salary expense                    $324,750

($322,200 + $2,550)

(Being closing of salary expense is recorded)

4 0
3 years ago
You are considering a project and are concerned about the reliability of the cash flow forecasts. To reduce any potentially harm
Nuetrik [128]

Answer: A. Lowering the degree of operating leverage.

Explanation:

The degree of operating leverage measure how much the earnings from a project will change as a result of sales.

If you are worried about the cash flow forecasts, it would be best to lower the operating leverage so as to reduce the forecasting error associated with the project. If the operating leverage is high then a small change in sales could impact income in a relatively huge way. By reducing the DOL, the cashflow from the project is easier to forecast and therefore more reliable.

8 0
3 years ago
During the year, Octagon produced 8,000 units, used 24,000 direct labor hours, and incurred variable overhead of $120,000. Budge
Natali5045456 [20]

Answer:

Manufacturing overhead rate(spending) variance= $24,000 favorable

Explanation:

Giving the following information:

Actual direct labor hours= 24,000

Octagon produced 8,000 units and incurred a variable overhead of $120,000.

The hours allowed per unit are 2. The standard variable overhead rate is $3.00 per direct labor hour.

To calculate the variable overhead spending variance, we need to use the following formula:

Manufacturing overhead rate(spending) variance= (standard rate - actual rate)* actual quantity

Actual rate= 120,000/24,000= 5

Manufacturing overhead rate variance=  (6 - 5)*24,000

Manufacturing overhead rate variance= $24,000 favorable

7 0
3 years ago
Jackson, Inc. produces two different products (Product 5 and Product Z) using two different activities: Machining, which uses ma
Anettt [7]

Answer:

The total Inspection cost assigned to Product Z $ 21,600

Explanation:

Jackson, Inc.

                        Total                      Product 5             Product Z

                        Cost                    %         Amount        %    Amount                                  

Machining,    $306,000,          35       107,100         65     198,900

<u>Inspection      $46,000            40       18,400           60      21,600 </u>

<u>Total                                                    $  125,500                  $ 220,500</u>

<u />

The total Inspection cost assigned to Product Z $ 21,600

The total Machining cost assigned to Product Z $ 198,900

The total Inspection cost assigned to Product 5  $ 18,400

The total Machining cost assigned to Product 5 $ 107,9100

6 0
3 years ago
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