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mamaluj [8]
3 years ago
5

On October 15, 2019, the Department of Labor announced that the Producer Price Index (PPI) experienced an unexpected 1.1 percent

increase in September, the largest jump in 9 years. Based on this information alone, what would you expect to happen to interest rates and stock prices?
A. We should expect higher interest rates and lower stock prices
B. We should expect higher interest rates and higher stock prices
C. We should expect lower interest rates and lower stock prices.
D. We should expect lower interest rates and higher stock prices.
Business
1 answer:
Kruka [31]3 years ago
5 0

Answer:

A. We should expect higher interest rates and lower stock prices.

Explanation:

Producer price index refers to the price that producers recieve for their products. When there is an increase in PPI it means producers are receiving more revenue.

Increased revenue will result in more money in circulation. To regulate the excess money the monetary authorities will increase interest rate to reduce borrowing and by extension money in the economy.

Because there is now a need to get more funds by the companies, they will lower share prices to make them attractive to prospective investors.

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A severe drought has damaged this year's lettuce crop. The initial effect on the lettuce market is a
rusak2 [61]

The initial effect on the lettuce market is (C) a decrease in the supply of lettuce.

<h3>What is the lettuce market?</h3>
  • Lettuce is divided into two types: head (iceberg) and leaf (romaine, butterhead, and leaf).
  • Since colonial times, lettuce has been farmed in the United States.
  • The ice shipping industry emerged in the western states in the early 1900s, boosting the range and appeal of lettuce.
  • Only potatoes outnumber lettuce salads in terms of annual consumption per capita.
  • In 2015, the annual consumption of all varieties of lettuce was 25.8 pounds per person, with head lettuce accounting for 51% (13.3 pounds per person).
  • Consumption of lettuce was about the same as in the preceding three years, but down approximately 20% from ten years before.

As a severe drought has damaged this year's lettuce crop.

Therefore, the straightforward initial effect on the lettuce market is (C) a decrease in the supply of lettuce.

Know more about the lettuce market here:

brainly.com/question/13180141

#SPJ4

Complete question:

A severe drought has damaged this year's lettuce crop. The initial effect on the lettuce market is a _____

A. decrease in the demand for lettuce.

B. rightward movement along the demand curve for lettuce.

C. a decrease in the supply of lettuce.

D. a decrease in both the demand and supply of lettuce

6 0
2 years ago
Beginning work in process was $145,000. Manufacturing cost incurred for the month was $810,000. The ending work in process was $
Zielflug [23.3K]

Answer:

cost of goods manufactured= $755,000

Explanation:

Giving the following information:

Beginning work in process was $145,000.

Manufacturing cost incurred for the month was $810,000.

The ending work in process was $200,000.

<u>To calculate the cost of goods manufactured, we need to use the following formula:</u>

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 145,000 + 810,000 - 200,000

cost of goods manufactured= $755,000

5 0
2 years ago
Which of the following entries would be made to record $20,800 of labor-80% of which is direct, and 20% of which is indirect-to
Andrei [34K]

Answer:

Option C

Explanation:

Entry:                                            DEBIT         CREDIT

Work in Process Inventory        16,640

Manufacturing Overhead(w)      4,160

Wages Payable                                                 20,800

Working: Manufacturing Overhead = 20,800 x 40% = $4,160

Note: In order to find out the work in progress and manufacturing Overhead we will consider sum of all direct cost as Work in progress and allocate the sum of indirect to Manufacturing Overheads.

8 0
2 years ago
The following information is from the 2019 records of Fast Lane Racing​ Gear: Accounts​ receivable, December​ 31, 2019 $ 41 comm
Snezhnost [94]

Answer:

Calculate the ending balance of Allowance for Bad​ Debts, after the adjustment for bad debts​ expense, at December​ 31, 2019.

Dr Bad Debt Expense $ 9,700

Cr Allowance for Uncollectible Accounts $ 9,700

Explanation:

  • December​ 31, 2019  

Dr Accounts Receivable  $ 41,000

  • Prior to adjustment  

Dr Allowance for Bad​ Debts $ 1,700

  • Net credit sales for 2019  

Credits Sales $ 177,000

  • Management estimates that $ 8 comma 000 of accounts receivable will be uncollectible.  

Dr Bad Debt Expense $ 9,700

Cr Allowance for Uncollectible Accounts $ 9,700

If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the % of accounts receivables as CREDIT.

Because the company has a debit balance in that account it's necessary to register an entry that compensate the DEBIT value and reflect A CREDIT estimated as % of account receivable.

  • FINAL Balance  

Dr Accounts Receivable  $ 41,000

Cr Allowance for Uncollectible Accounts $ 9,700

Bad accounts are those credits granted by the company and there is no possibility of being charged.

"When customers buy products on credits but the company cannot collect the debt, then it's necessary to cancel the unpaid invoice as uncollectible."

One way is to directly cancel bad debts at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount, less assets

The other way is to determine a percentage of the total amount of accounts receivable as bad debts, there are many ways to analyze accounts receivable and calculate the value of bad debts.

When the company has the percentage of uncollectible accounts, the required journal entry is Bad Expenses (debit) with Reserve for Bad Accounts (credit)

At the time of cancellation, since the expenses were recognized before, we only use the Allowance for Uncollectible Accounts (Debit)  with accounts receivable (credit), with this we are recognizing the bad credit of the company.

4 0
3 years ago
According to the American Marketing Association, the term _____ is defined as the activity, set of institutions, and processes f
Deffense [45]

Answer:

The answer is: Marketing

Explanation:

In 2008, the American Marketing Association changed the definition of  marketing to:

"Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large."

This was done basically to broaden the activities involved in the process of marketing. With this new approach the AMA gave the whole process of marketing a much broader role in the activities involved in society. Before this new definition was released, marketing was seen as an organizational function which involved only the company (organization and stakeholders) and its customers.

7 0
3 years ago
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