1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
REY [17]
3 years ago
13

What is the diffrence between actual and proposed selling price

Business
1 answer:
Orlov [11]3 years ago
4 0

Actual means the real selling price for the product paid by the customer whereas proposed selling price is the price which was suggested to be set for the product.

You might be interested in
The National Income and Product Accounts identity states:__________A) Expenditure  Production  Income.B) Production  Expendit
zaharov [31]

Answer:

I. National Income Accounting:

National income accounts are an accounting framework is useful in measuring economic activity.

A. Three approaches—all produce the same measurement of the production of the economy.

1. product approach: how much output is produced

2. income approach: how much income is created by production

3. Expenditure approach: how much purchasers spend

B. Why all three approaches are the same: Assumes no unsold goods (at this point) then the market values of goods and services produced must equal the amount buyers spend to purchase them (product approach=expenditure approach). What the seller receives (income) must equal what is spent (expenditure).

II. Gross Domestic Product (GDP)

A. GDP vs. GNP

GNP= output produced by domestically owned factors or production. (By our people)

GDP= includes production produced by foreign owed factors of production within the countries border and excludes domestically owned production in foreign countries. (On our soil)

1. GDP = GNP – net factor payment from abroad (NFP)

2. How big is the difference?

B. Product approach: The market value of all final goods and services produced within a nation during a fixed period of time.

1. Market value: allows comparison between different goods. Has some problems – ignores some goods. underground economy, and government services.

2. Final goods and service: Treatment of inventories; Capital goods; Avoids double counting; Value added.

3. New production: Ignores goods produced in previous periods

C. Expenditure approach: Total spending on final goods and services produced within a nation during a specified period of time.

1. Income expenditure identity and four categories of spending: Consumption (C), Investment (I), government purchases of goods and services (G) and net exports (NX)

Y = C + I + C + NX

2. Consumption(C): Spending by domestic households on final goods and services

a. Consumer durable goods: Long lasting goods

b. Nondurable goods used up quickly

c. Services

3. Investment (I): Spending on new capital goods by business

a. Business fixed investment

b. Residential fixed investment

c. Inventory investment: Changes in the amount of unsold goods, goods in progress and new materials

4. Government purchases of goods and services (G):

a. State and local vs. Federal spending

b. Transfers and interest payments on debt are not counted. They are counted in total government expenditure which is not the same as government purchases of goods and services.

5. Net exports (NX): exports minus imports

a. Need to subtract imports since they are counted in C. I and G can add goods produced within the country purchased by foreign interests (exports).

D. Income approach adds up income received by producers, including profits and taxes paid to the government

1. Income generated by production

a. National income =

compensation of employees

+ proprietors income

+ rental income of persons

+ corporate profits

+ net interest

+ taxes on production

+ business transfers

+ surplus of gov enterprises

b. National income + statistical discrepancy = Net National Product (NNP)

Note: This changed a couple years ago. If you have an old addition, you may see the indirect business tax. It is no long used in this equation!

c. NNP + depreciation = GNP

d. GNP – NFP = GDP

2. Income of private sector and government

a. Private disposable income = income of private sector = private sector income earned at home (Y or GDP) and abroad (NFP) + payments from the government sector (transfers TR and interest on debt INT) – taxes paid to government (T) = Y + NFP + TR + INT – T

b. Government net income = T- TR – INT

III. Saving and Wealth

A. Wealth Difference between assets and liabilities

B. Measures of aggregate savings

1. Saving = current income – current spending; saving rate = saving/current income

2. Private saving (Spvt) Spvt = Y + NFP – T + TR + INT – C

3. Government Saving (Sgovt) Sgovt = T – TR- INT – G

a. Government saving = Government budget surplus (deficit = -Sgovt)

4. National Saving= private saving + government saving

S = Spvt + Sgovt = Y + NFP - C – G = GNP - C – G

C. The uses of private saving

1. S = I + (NX + NFP) = I + CA

CA = NX + NFP = current account balance

2. The use of savings identity

Spvt = I – Sgovt + CA

If the budget deficit increases one or a combination of the following happen

1) private saving must rise

2) investment must fall

3) the current account balance must fall

IV. Prices Indexes, Inflation and Interest Rates

A. Nominal vs. Real variables

Nominal Variables – Measures the economic variable in terms of the current market value.

Real Variable—Measure the variable valued at the prices in a base year.

B. Real vs. Nominal: Calculation the differences

Examples Small country only produces base balls and baseball bats

Explanation:

3 0
3 years ago
Arjen owns investment A and 1 bond B. The total value of his holdings is 1,529 dollars. Investment A is expected to pay annual c
zloy xaker [14]

Answer:

In order to find the present value of the bond we have to calculate the present value of investment A and subtract is from 1529. We can find the present value of A by discounting all its cash flows.

As the first cash flow is received today and the last will be received 3 years form now there will be a total of 4 cash flows

1) 218.19 (Will not be discounted as we are receiving it today in the present)

2) 218.19/1.0987 (Discount by 1 year as cash will be received in 1 year)

3) 218.19/1.0987^2 (Discount by 2 years as cash will be received in 2 years)

4) 218.19/ 1.0987^3 (Discount by 3 years as cash will be received in 3 years)

= 218.19 + 198.58 + 180.74+ 164.51 = 762.02

PV of Bond = 1529-762.09= 766.91

Semi annual coupons mean 2 payments a year. Bond B matures in 23 years which means a total of 46 payments (23*2). N=46. A coupon rate of 6.4 percent means that the bond pays $64 (0.064*1000) each year. $64 divided by 2 is 32 which is the amount of each semi annual payment Arjen receives. Pv= 766.91 FV = 1000

In a financial calculator put

PV= -766.91

N= 46

FV=1000

PMT= 32

and compute I

I is 4.38 and we will multiply it by 2 because the payments are semi annual. So we will get an I of 8.76

YTM= 0.0876

Explanation:

5 0
3 years ago
The strategy of setting a single price for two or more units is known as
jekas [21]
Is known as multiple- unit pricing.
8 0
3 years ago
Read 2 more answers
A homebuilder negotiates a deal with a farmer to give the farmer a percentage of the profit on homes the homebuilder builds and
Tcecarenko [31]

Answer:

C. Yes, because the farmer is making a percentage of the profit

Explanation:

If the farmer is being used as sales man and is making a 50% profit on the home he sells, then this means he is an employee and to do his job the right way he needs to have a real estate licence for that.

Hope this Helps.

Goodluck.

4 0
3 years ago
Read 2 more answers
If an economy is producing at a point on its production possibilities frontier, it is: a.efficient in production and allocation.
irinina [24]

Answer:

d.efficient in production but not necessarily in allocation.

Explanation:

The production possibility curve portrays the cost of society's choice between two different goods. An economy that operates at the frontier has the highest standard of living it can achieve, as it is producing as much as it can using the same resources. If the amount produced is inside the curve, then all of the resources are not being used.

- all points on the curve are points of maximum productive efficiency

- However, an economy may achieve productive efficiency without necessarily being allocatively efficient. Market failure (such as imperfect competition or externalities) and some institutions of social decision-making (such as government and tradition) may lead to the wrong combination of goods being produced (hence the wrong mix of resources being allocated between producing the two goods) compared to what consumers would prefer, given what is feasible on the PPF.

8 0
3 years ago
Other questions:
  • Alex Company prepares its statement of cash flows using the direct method for operating activities. For the year ended December
    11·1 answer
  • Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain all of its earnings. However
    10·1 answer
  • The following information pertains to Trenton Glass Works for the year just ended. Budgeted direct-labor cost: 70,000 hours (pra
    12·1 answer
  • Section 1239 recharacterizes gain on the sale of depreciable property to related person as ordinary income.
    6·1 answer
  • Economies of scale: Question 1 options: A) are available to small firms but not to large firms due to management inefficiencies.
    6·1 answer
  • Athleisure, Inc. sells athletic gear by sending customers a catalog nine times a year. The company has no retail stores or websi
    10·1 answer
  • The 1998 annual report for Sears shows that, since 1978, it has experienced dramatic changes in the composition of its workforce
    12·1 answer
  • The following information describes the production activities of Mercer Manufacturing for the yearActual direct materials used 3
    6·1 answer
  • After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $632,338 and Allo
    6·1 answer
  • If a broker has compensated a non-licensed person for activities that he or she is not licensed for, the broker is guilty of
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!