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3 years ago

What economic activities are not included in GDP?

1 answer:

5 0

1. Illegal and unreported economic activity: While goods such as illegal drugs, gambling, and prostitution are sold in markets, the transactions are hidden for obvious reasons.

2. Home production and bartered goods/services: If cash doesn't change hands, the transaction will not be included in GDP. One of the somewhat misleading aspects of GDP is that whether certain things are included depends not on the nature of the good or service, but whether it was (openly) exchanged for cash.

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Luther Corporation Consolidated Balance Sheet December 31, 2006 and 2005 (in $ millions) Assets 2006 2005 Liabilities and St

aliina [53]

Answer:

C. 1.3

Explanation:

market to book ratio = market capitalization / book value

market capitalization = total stocks outstanding x stock price = 10,200,000 stocks x $16 = $163,200,000
book value = stockholders' equity = $125,600,000

market to book ratio = $163,200 / $125,600 = 1.299 ≈ 1.3

The market to book ratio basically measures a company markets value versus its book value. Generally, if a company is profitable and successful, its market to book ratio should be higher than 1.

6 0

4 years ago

Cahalane Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 91 Man

ankoles [38]

Answer:

A. The amount of fixed overhead deferred in inventories is $60,000

Explanation:

Unit product cost

Year 1 Year 2

Direct materials $12 $12

Direct labor $5 $5

Variable manufacturing

overhead $5 $5

Fixed overhead

$48 $36

($432,000 ÷ 9,000) ($432,000 ÷ 12,000)

unit product cost $70 $58

Fixed overhead deferred (1,000 × $48) $48,000

Fixed overhead released -$48000

Fixed overhead deferred (3000 × $36) $108,000

Net $48,000 $60,000

The amount of fixed overhead deferred in inventories is $60,000

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4 years ago

Jean's Fitness Club provides monthly memberships as well as personal training sessions. The personal trainers earn 50% of the re

kiruha [24]

Answer:

c. $175,500

Explanation:

Revenue $140,000

Training revenue $75,000

Product Sales <u>$65,000 </u>

Total Revenue $280,000

Variable Expenses

Personal trainer wages expense $70,000

Cost of Product sold $35,000

Total Variable Cost (<u>$105,000)</u>

Contribution margin / operating income $175,000

Fixed Costs

Space rental expense $11,000

Depreciation expense $6,000

Rental insurance expense $3,000

Front desk staff wages expense $12,000

Total Fixed cost (<u>$32,000)</u>

Net Income <u>$143,000</u>

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4 years ago

Which of the poeple or insittiuations listed exercises the msot power over the quantity of money in the united states economy?

givi [52]

The United States has issued a variety of currency notes for use in paying income tax, making investments, and making purchases from colonial to current times. Alexander Hamilton establishes the Bank of the United States in order to create a system of credit for the government.

<h3>What does an increase in labor efficiency mean?</h3>

favorable change If the labor efficiency variance is in the company's favor, it means that the workforce is operating as it should and that the number of hours it spends producing is in line with the business's planned criteria.

<h3>What do the symbols on Continental currency designs represent?</h3>

In a number of designs of Continental Currency, the thirteen colonies that battled and vanquished Great Britain during the American Revolution are shown. These representations represent the aspirations and virtues of the colonies.

Learn more about banknotes:

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8 0

2 years ago

Adelberg Company has two products: A and B. The annual production and sales of Product A is 500 units and of Product B is 1,000

Goryan [66]

Answer:

Predetermined manufacturing overhead rate= $171.89 per direct labor hour

Explanation:

<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Total direct labor hours= (500*0.4) + (1,000*0.2)= 400 direct labor hours

Predetermined manufacturing overhead rate= 68,756 / 400

Predetermined manufacturing overhead rate= $171.89 per direct labor hour

7 0

3 years ago