Answer:
The correct answer is option C.
Explanation:
The GDP of an economy includes only the final goods and services produced in the economy in the given period of time.
In the given example , the day care shows the service provided by Jack and Jill.
The crayons and color books, milk, attendants are all intermediate goods and services.
So their values will not be included in the GDP.
The GDP will only include the value of daycare sold which is $100,000.
Answer:
The correct example of an analytical procedure is the comparison of A) financial ratios of the current year to previous year.
Explanation:
Analytical procedure is a type of financial audit process which is usually done by an auditor or a person who has extensive knowledge of the business and the industry. Through this process an auditor , is trying to understand the clients business and changes that are taking place in the industry , so that he or she can identify what are the potentially risky areas for the company.
In this process an auditor would compare the financial statements of the company with the source of information or with previous years financial statements to see what re the areas in which company has improved or needs to be improved.
So it won't be wrong to say that an example of analytical procedure would be comparing the financial ratios of current year to previous year.
Answer:
Limitations :
1. ignores cash flows after payback period
2. ignores the worth of those cashflows over time
Explanation:
Payback Period is the length of time required for the total cash inflows to equal the initial capital investment.
In principle, the sooner the capital expenditure is recouped (paid back) the better and the more attractive the project is. Whilst the longer the period the less attractive the project is.
However, payback method ignores the fact that some projects in their initial phases start with little cash inflows which at a later stage increase significantly. Thus this method ignores cash flows after payback period. Also, this method ignores the worth of those cashflows over time ( ignores time value of money) for a dollar today is worth more than a dollar tomorrow.
Answer:
First one: Economic Order; Second One: Safety Stock
Explanation:
I know the second one's right because it frequently shows up on PLATO modules for business. The first one is economic order according to investopedia.com. I looked up both carrying quantity and just in time quantity, too-- it seems as carrying quantity isn't a thing, and just in time quantity focuses on decreasing waste. See my comments on your question for quotes from the source.
Hope this helps you!!