Answer:
(B) adding all of the debits, adding all of the credits, and then subtracting the smaller sum from the larger sum
Explanation:
While calculating the closing balance of any account,
There includes two possibilities that the account might have debit balance or the account might have credit balance. And for computing this:
All the debits shall be accumulated and then their total shall be computed.
Similarly, all the credits shall be accumulated and their total shall be done.
Which ever is more then the account will have that nature of balance, accordingly the smaller shall be deducted from the larger one and the larger one will decide the nature of balance whether debit or credit.
Answer:
B) The letter of intent is an invitation to negotiate, which is not an offer.
Explanation:
A letter of intent is simply an invitation to negotiate any type of transaction, sales or lease. The amounts included in the letter can serve as a basis for the negotiating or bargaining process, but they are not fixed and even Ryan can change them. This is similar to an ad in a newspaper that offers something for sale. Until the bargaining process is over and both parties agree on the consideration exchange and other terms, it is just a notice without any legal value.
Government activity affects the economy in four ways: The government produces goods and services, including roads and national defense. Less than half of federal spending is devoted to the production of goods and services
Answer:
Government spending would have to change by <u>$1.6 billion</u>
Explanation:
The marginal propensity to consume (MPC) refers to the proportion of an increase in aggregate income that is spent on consumption of commodities by a consumer.
Since from the question, we have:
MPC = Marginal propensity to consume = 0.75
The MPC can therefore be used to calculate the fiscal multiplier which measures the effect of government spending on real GDP as follows:
Fiscal multiplier = 1 / (1 - MPC) = 1 / (1 - 0.75) = 1 / 0.25 = 4.0
Therefore, we have:
Change in government spending = Fiscal multiplier * Amount of targeted increase real GDP = 4.0 * $400 million = $1.6 billion
Therefore, government spending would have to change by <u>$1.6 billion</u> to generate $400 million increase in real GDP.
A. The items that fall under the DIRECT MATERIAL category include the following:
1. Film cost for the X ray machine.
2. Electricity cost for the X ray department.
3. Maintenance and repair on the X ray machine.
4. X ray department supplies.
The items that fall under the DIRECT LABOUR category include the following:
1. Salaries of the X ray machine technician.
2. Salary of the X ray technicians' supervisor.
The items that fall under the SERVICE OVERHEAD category include the following:
1. Wages for the hospital janitorial personnel.
2. Property taxes on the hospital building.
3. Depreciation on the hospital building.
4. Depreciation on the X ray department equipment [Manufacturing overhead]
B. The costs that are incurred during the production of a good or service are usually divided into three categories, which are direct material, direct labour and overhead costs.
Direct materials refer to those materials used in the production process which can be traced to a particular unit or department. A good example of a direct material is the raw materials used in the production unit for the production of a particular product.
Direct labour refers to the salaries and wages of those employees that are directly involved in the production process or in carrying out a particular operation. An example of a direct labour for the production of chocolates is the salary of those workers in the production unit.
Overhead cost refers to all other costs that are incurred during the process of production.These costs can not be traced to a specific department per say, but it cover the whole business unit. Overhead cost is of two types: administrative and manufacturing overheads. Examples of overhead costs are rent, utilities, insurance, depreciation, etc.
