Costs that are shared by multiple cost objects in a company are known as common costs.
<h3>What is cost?</h3>
Cost involves expenses that are incurred either in production or purchase of goods and services. Common cost consist of all cots incurred, it is not attached to any specific cost object, such as a product or process.
When cost is attached to particular cost it can be given a name.
Example is overhead cost of production, direct cost and indirect costs.
Therefore, Costs that are shared by multiple cost objects in a company are known as common costs.
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Answer:
d. the rate at which consumers are likely to adopt a new product or service.
Explanation:
Diffusion theory tends to describe that how, why and at what rate does now ideas and technology spreads. This theory is mainly focused on human capital and cannot function without it.
New ideas and technology cannot be spread until people adopt them. Therefore the focus of this theory remains at the rate at which consumers are likely to adopt a new product or service.
The statement which states that If the Federal Reserve's wishes for the <em>federal funds rate</em> to be permanently at the target level, then the <em>appropriate policy</em> for the Federal Reserve is to take a defensive open market purchase, is TRUE.
Based on the given question, we can see that an open market operation refers to the way the federal government makes the federal funds rate to change buy making the loans more easily obtainable.
With this in mind, if they wish for the federal funds rate to be <em>permanently </em>at the target level, then they would have to take a defensive position by increasing the reserves through buying of securities so that <em>economic activity</em> would be stabilised.
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<u>Answer:</u> The investment that should be made is $14612.2
<u>Explanation:</u>
To calculate the principle amount, for the interest compounded monthly follows:
A = Amount after time period 'T' = $25,000
P = Principal amount = ?
R = rate of interest = 2.15 % = 0.0215
n = Number of times interest applied per time period = 12 ( 1 year = 12 months)
T = time period = 25 years
Putting values in above equation, we get:
Hence, the investment that should be made is $14612.2
