The price elasticity of baseball bats is −0.77, this indicates that the demand for bats tends to inelasticity. Therefore, if the manager wants to dispose of his inventory, he would advise you not to lower the price because it would cause a decrease in income. He could raise the price and earn more since being an inelastic demand, the quantity demanded would not be modified as much as the price would change.
Answer:
Lower by $8,250
Explanation:
The operating income reported will be different as the unit level of inventory increased during the account period
.
Denominator rate:
= Fixed manufacturing costs ÷ Budgeted denominator level
= 18,000 ÷ 2,400
= 7.5
Operative income:
= Total Units produced - (Total units sold × Denominator rate)
= 2,700 - (1,600 × 7.5
)
= 1,100 × 7.5
= $8,250
Lower by $8,250 under the variable costing because 8250 of fixed manufacturing cost remain in inventory under absorption.
Answer: C. real GDP = $6.0 trillion and aggregate planned expenditures = $4.0 trillion
Explanation:
Unplanned Inventory arises when Real GDP is larger than Planned Expenditure because it must satisfy the below formula,
Real GDP = Planned + Unplanned expenditure
For Option C,
Real GDP = 6.0 trillion,
Planned expenditure = 4.0 trillion
Unplanned Expenditure = Real GDP - Planned Expenditure
= $6.0 trillion - $4.0 trillion
= $2.0 trillion
Therefore Option C is correct as it led to a $2.0 trillion increase in Expenditure which translates to inventory.
Answer and Explanation:
Stock based compensation: stock based compensation which is non cash expense is charged as operating expenses to operating income as stipulated in Accounting Standards Codification (ASC) 718. After a year, the equity account is credited and cash is debited
Restricted stock units: contra equity is debited and common stock is credited. Part of the shares after vesting and recognition as income is charged and withheld for taxes
Answer:
The correct answer is letter "A": Articles of partnership.
Explanation:
The Articles of partnership is a legal document requested when forming a Limited Liability Partnership (LLP) where the partners' contribution, functions, percentage of ownership of the partnership, liabilities, distribution of profits and losses, and means of dissolution are specified.
