Answer:
The correct answer is marginal product.
Explanation:
The marginal product of labor is the change in the output or total product because of hiring an additional unit of labor. In other words, the amount that an additional worker adds to the revenue is its marginal product.
It can be expressed as,
The marginal product of labor depends on the quantity of capital and labor already employed.
Answer: D. decrease in equity investment
Explanation:
A decrease in the owner's equity occur when a company loses money during the normal course of the business and when the owners need to move equity into normal business operations.
But in this case under the equity method, dividends declared by a subsidiary are accounted for by the parent when there is decrease in equity investment.
Equity also decreases when an owner withdraws money for personal use.
Ayayai Company has an old factory machine that cost $63,000. The machine has accumulated depreciation of $35,280. Ayayai has decided to sell the machine. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Answer:
d. Revenue recognition
Explanation:
The principle of revenue recognition occurs when the revenue is recognized or earned whether cash is obtained or not and it also meets the accounting accrual basis. Realizable here implies that the customer receives the product but the payment was made afterward.
Since the given scenario reflects the violation of the revenue recognition principle.
Answer:
A. Substitution bias and the introduction of new goods.
Explanation:
The Consumer price index is a measure of the overall cost of goods and services (usually measured in fixed basket), purchased by a consumer in a year as compared to previous years. It gives the government and economists an idea of the cost of living of individuals in a nation. Some problems of the CPI include
1. Substitution Bias: The CPI assumes that prices of goods and services change in a fixed way as the years go by. It also does not consider the fact that sometimes some customers have preference for expensive items compare with the less expensive items. This is reflected in the OPEC case where it is automatically assumed that customers would prefer the cheaper hydrogen-powered engines to the gasoline engines.
2. Introduction of New goods: The CPI fails to recognize that new goods would enter a market because the CPI assumes a fixed basket of items and products. The introduction of new goods would affect comparisons to previous years' CPIs. The new good invented in the above case is the hydrogen-powered engine.