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3 years ago

A continuous decrease in the level of prices over time is called ________.

1 answer:

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A continuous decrease in the level of prices over time is called deflation. It involves the contraction of the supply of money in an economy. The opposite of such is inflation. During this time, the power of the currency and the wages are high than what is normal. It causes for capital, goods, services and labor costs to be lower. Monetary deflation can be caused by the decrease in supply of money or instruments that can be redeemed by money. In present, the supply of money is influenced by the central bank of each nation. Price deflation can be caused by a decrease in the demand of the goods and services and also increase in the productivity of the economy.

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McCoy's Fish House purchases a tract of land and an existing building for $990,000. The company plans to remove the old building

bekas [8.4K]

Answer:

$ 1,001,800

Explanation:

The following costs will be included in th cost of land

Purchase cost: 990,000

Closing cost: 2,900

Back Taxes: 8,900

(land taxes are payed every year, so they can't be included in the cost of land)

Total cost of land= 990,000+2,900+8,900= 1,001,800

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4 years ago

A manufacturer of brand A jeans has daily production costs of Upper C equals 0.3 x squared minus 120 x plus 12 comma 585, where

makvit [3.9K]

Answer:

a. 200 jeans should be produced each day in order to minimize costs.

b. The minimum daily cost is $108,585

Explanation:

a. How many jeans should be produced each day in order to minimize costs?

Given C = 0.3x^2 - 120x + 120,585 ........................... (1)

Cost is minimized when MC = C' = 0

To obtain MC, equation (1) is differentiate with respect to x as follows:

dC/dx = MC = C' = 0.6x - 120 = 0 ............................... (2)

From equation (2), we can now solve for x follows:

0.6x - 120 = 0

0.6x = 120

x = 120 ÷ 0.6

x = 200

Therefore, 200 jeans should be produced each day in order to minimize costs.

b. What is the minimum daily cost?

Substitute 200 for x in equation (1) to have:

C = 0.3(200^2) - 120(200) + 120,585

= 12,000 - 24,000 + 120,585

C = $108,585

Therefore, the minimum daily cost is $108,585.

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3 years ago

Read 2 more answers

The following information has been provided by Crosby Corporation:

AleksandrR [38]

Answer:

Option A) $5000

Explanation:

The explanation for this question is given in the attachment below.

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3 years ago

A teacher wishes to determine the reliability of three trials on a performance test. she uses anova to obtain the reliability co

liberstina [14]

The technique is called: interclass correlation

Interclass correlation define the connection between two variables that belong to different classes,and commonly used for countable measurements that made for several groups of subject. Currently, this type of correlations is among the most commonly used by marketing unites to research various information about their products (such as popularity, segmentation, positioning, etc_)

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3 years ago

Below are various transactions that a local corporation had occur during the month. For each transaction, indicate the transacti

Debora [2.8K]

Answer:

Explanation:

As per accounting equation,

Assets = Liabilities + Owners Equity

Following would be the effect of the transactions:

A. Received $50,000 in cash from sale of common stock

This transaction would increase the assets as cash is an asset at the same time it would increase capital or owners equity by the same amount.

So this will cause an increase in amount on both sides by $50,000

B. Borrowed $20,000 from the local bank by signing a note promising to pay loan plus interest in 2 years

This would result into an increase in the liability by the money borrowed at the same time would increase cash balance i.e the assets.

Thus it will increase the accounting equation by $20,000.

C. Paid $8000 for the purchase of an equipment

This increases the assets balance at the same time reduces the cash balance. Since both equipment and cash are assets, the net effect of the transaction on equation would be NO EFFECT.

D. Provided services to customer on account

This would increase debtors or accounts receivables balance and at the same time would increase sales.

So the effect would be an increase on the assets side of the equation. Also since this represents a credit sale, this would increase the profits which would form part of reserves which in turn increases the owners equity.

Thus, an increase in assets and owners equity which shall increase the equation by $5000

E. Received $ 5000 from customers above

This shall increase cash balance and at the same time reduce debtors balance by $5000. Since both are assets, the transaction will have NO EFFECT.

F. Paid $1,200 for one years worth of insurance in advance

Premium paid in advance is a prepaid expense and an asset. This shall increase prepaid expenses and at the same time reduce cash by the same time so it will have NO EFFECT on the equation.

G. Paid $800 to employees for salaries

This reduces the profits by $800 i.e owners equity and at the same time reduce cash (an asset).

So the equation will decrease by $800.

H. Purchased supplies costing $1,400 on account

This refers to credit purchases which shall increase the purchases balance which in return would reduce profits and hence owners equity. At the same time it will create a liability for creditors which shall increase the balance of liabilities by the same amount. So NO CHANGE

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3 years ago