The index method of cost estimation is used when we want to do the comparison between the cost of something today with the cost in the past.
Given that the index method of cost estimation is given by an=ck(in/ik).
We are required to give the time or situation in which we have to use index method to determine the cost.
A cost index is basically a ratio of the cost of something today to its cost at some time in the past. As such, it is a tool which is used to estimate the cost of things today based on their cost some time ago.
From the definition of cost index we can say that the index method of cost estimation is used when we want to do the comparison between the cost of something today with the cost in the past. This method is basically used in statistical or economics departments of the government of a country.
Hence the index method of cost estimation is used when we want to do the comparison between the cost of something today with the cost in the past.
Learn more about index method at brainly.com/question/28016640
#SPJ4
Answer:
Operating revenue, R = $300000
Operating Cost, C = $280000
Fixed Cost, F = $40000
Salvage value of fixtures, S = $15000
If it remains open, its value will be = R - C - F + S = 300000 - 280000 - 40000 + 15000 = -$5,000
If the salon closes down, its value will be = S - F = 15000 - 40000 = -$25000
.
Fran should remain open as the value of the salon if remaining open (-$5,000) is more than the value of closing it (-$25,000).
Answer:
C. changes both the supply of and demand for loanable funds.
Explanation:
A budget deficit is when expenses exceed revenue and denotes the financial capability of a country.
In the presence of a deficit, the demand for loanable funds will increase because the government moves towards lending money. Deficits decrease the supply of loanable funds while surpluses increase the supply of loanable funds. So, both supply and demand of loanable funds are affected by budget deficit.