Answer:
The correct option is A and B.
Explanation:
The following will lead to increase in the productivity of the business.
1. By increase in the physical capital stock of each worker
2. By increasing the human capital of each worker.
Increasing in human will lead to increase in productivity and also the increase in the physical capital, the worker will able to increase the productivity.
Answer:
C. The actual variable overhead costs were lower than the budgeted costs.
Explanation:
Variable Overhead Cost variance =Budgeted cost - Actual Cost
where this value is positive, this is favorable, where this is negative it is unfavorable.
Actual cost = Actual hours X Actual rate per hour
Budgeted Cost = Budgeted hours for actual level of production X Budgeted rate per hour
Even if actual hours are lower than budgeted it will not lead to favorable overhead as actual rate per hour might be less.
Total variable overhead will only be favorable when net actual variable overhead cost is less than budgeted variable overhead costs.
C. The actual variable overhead costs were lower than the budgeted costs.
Answer:
Explanation:
Opening units 30000
Started 120000
150000
Closing 20000
Transffered 130000
Production Table W.Avg Method
A B C=A+B
Cost Element Complete Closing WIP Equivellant production
units
Material 130,000 20,000 (100%) 150,000
Coversion Cost 130,000 10,000 (50%) 140,000
Answer: Option (A) is correct.
Explanation:
Correct Option: Normal profits because economic profits will attract new firms and there are no entry restrictions.
In a monopolistically competitive market, firms will earn an economic profit in the short run, so new firms attracted with these profits and decided to enter into the market in the long run.
There is no barriers on entry and exit of the firms in the monopolistically competitive market. When new firms enters into the market, as a result supply of differentiated products increases.
This causes the firm's market demand curve to shift leftwards. It will continue shifting to the left in the firm market demand curve till the point where it is nearly tangent to the average total cost curve.
At this point, firms earns zero normal profit and can earn normal profits in the long run same as a perfectly competitive firm.
