It is true that capitalization of interest is adding accrued interest to the principal balance, so that the interest-bearing principal balance of the loan increases.
<h3>What is interest capitalization?</h3>
This is when an unpaid interest is rolled over with the principal amount, which increase the overall amount to be paid. It is the inclusion of an unpaid interest to the principal balance of the loan taken.
Hence, Capitalization of interest is adding accrued interest to the principal balance, so that the interest-bearing principal balance of the loan increases.
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Answer:
41 percent
Explanation:
Given : Budgeted Sales $112,900,000
Fixed Costs $25,000,000
Variable Costs $66,611,000
Contribution margin = Net Sales - Variable costs
= $112,900,000 - $66,611,000
= $ 46,289,000
Contribution Margin Ratio = = = 41%
Contribution margin ratio indicates the percentage of sales remaining so as to cover a firm's fixed expenses. It also represents how much percentage of sales is required to cover the variable costs.
It is also expressed as , 100 - Variable cost ratio (in percentage)
Producing a bill of materials is a business process in the functional area known as A. Manufacturing and production.
<h3>What is production?</h3>
It should be noted that production simply means the creation of a particular good that can be used by the consumers.
In this case, producing a bill of materials is a business process in the functional area known as manufacturing and production.
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As the money supply consists of both currency & balances in different accounts, it is used by top financial institution to make economic decisions.
<h3>What is a money supply?</h3>
This refers to the total amount of money such as cash, coins, balances in bank accounts that are in circulation in a year.
<h3>M1</h3>
The M1 means the most liquid money that comprised of the currency, traveler’s check, and checking account deposits.
- M1 = Currency + traveler check + checking account deposits.
<h3>M2</h3>
The M2 is broader measure of Ms although it is has a less liquid measure compared to M1 and consists of currency, traveler’s checks, checking deposits, savings accounts, money market mutual funds etc
- M2 = M1 + savings accounts deposits + money market mutual funds.
<h3>M3</h3>
The M3 is broader measure of Ms as it includes M2 money as well as large time deposits, institutional money market funds, short-term repurchase agreements, larger liquid funds etc.
- M3 = M1 + Time deposits with commercial banks (Fixed deposits, Recurring deposits).
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Answer:
CHECK THE EXPLANATION.
Explanation:
A planned economy is a type of economic system where investment, production and the allocation of capital goods takes place according to economy-wide economic plans and production plans. A planned economy may use centralized, decentralized, participatory or Soviet-type forms of economic planning whereas a mixed economy is an economy organized with some free market elements and some socialistic elements, which lies on a continuum somewhere between pure capitalism and pure socialism. ... Mixed economies socialize select industries that are deemed essential or that produce public goods.