Answer:
c. difference between total variable costs and total costs at a particular activity level
Explanation:
The high low method consists of calculating costs on the basis of highest & lowest activity & comparing their corresponding total costs.
Variable cost per unit is found by : change in cost divided by the change in activity level for two points
Variable Cost per unit = <u>Highest activity cost - Lowest activity cost </u>
Highest activity units - lowest activity units
Fixed Cost is thereafter calculated by subtracting Total Variable Costs from Total Cost
Fixed Cost = Highest Activity Total Cost - [ (Variable cost per unit) x (highest activity units)
Fixed Cost = Lowest Activity Cost - [ (Variable cost per unit) x (lowest activity units)]
Answer:
The correct answers to fill the blank spaces are not be; small
Explanation:
If a currency's spot market is liquid, its exchange rate will not be highly sensitive to a single large purchase or sale of the currency. Therefore, the change in the equilibrium exchange rate will be relatively small.
Answer:
scarcity.
Explanation:
Scarcity can be defined as an economical problem that gives the relationship between non-renewable (limited) resources and the limitless wants and needs of consumers.
Basically, it's very important that producers of goods and services make decisions that would help them on how to efficiently allocate scarce or limited resources, in order to meet the unending requirements, wants and needs of consumers.
In Economics, an example of scarcity is that most of the resources used for the manufacturing of finished goods and services are nonrenewable, and as a result, the wants and needs of the end users or consumers are limited. Thus, economists would advise that economies should decide on what to produce, how to produce, when to produce and for whom to produce due to the finite and limited nature of resources i.e the concept of scarcity.
Answer:
See below
Explanation:
1. Complete accrual basis income statement
Sales
($28,000 + $3,000)
$31,000
Less cost of goods sold
($13,000 + $2,000 - $3,000)
-$12,000
Operating expenses
($9,000 - $2,000)
-$7,000
Depreciation expenses
-$4,000
Income tax
($4,000 + $1,000)
-$5,000
Amortization expense
-$1,000
Gain on sale of equipment
$2,000
Net income
$4,000
2. Cash flow statement (Indirect)
Net income
$4,000
Adjustments;
Add depreciation
$4,000
Add write off intangibles
$1,000
Less gain on sale of equipment
-$2,000
Less increase in accounts receivables
-$3,000
Less increase in inventory
-$3,000
Add increase in accounts payable
$2,000
Less decrease in accrued payable
-$2,000
Add increase in deferred income tax payable
$1,000
Net cash from operations $2,000
Answer:
$76,134.84
Explanation:
Data provided in the given question
Future value = $105,000
Fixed interest rate = 4.1%
Number of years = 8
The calculation of present value is given below:-
= Future value ÷ (1 + rate of return)^number of years
= $105,000 ÷ (1 + 4.1%)^8
= $105,000 ÷ 1.379132002
= $76,134.84
Therefore, we simply applied the present value formula.
