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2 years ago

Which of the following statements about the consumption component of GDP is not correct?

Business

1 answer:

Assoli18 [71]2 years ago

3 0

Answer:

D. Spending on services is smaller than the amount of consumption spending on durable and nondurable goods.

Explanation:

For developed countries like the U.S, there is a lot of stress in consumption of services such as good health care, appropriate and quality education and among others. These services contribute to a larger proportion of consumption component of GDP than both durable and nondurable commodities. Therefore, the statement “spending on services is smaller than the amount of consumption spending on durable and non-durable goods” is not correct

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The following production data were taken from the records of the Finishing Department for June:Inventory in process, 6-1 (30% co

ad-work [718]

Answer:

Option (a) is correct.

Explanation:

Given that,

Completed units during June = 65,000 units

Ending inventory units = 7,000 units

Beginning inventory units = 4,000 units

Number of material equivalent units of production in the June 30:

= Completed units during June + Ending inventory units - Beginning inventory units

= 65,000 units + 7,000 units - 4,000 units

= 68,000 units

Therefore, the number of material equivalent units of production is 68,000 units.

7 0

3 years ago

EA4.

boyakko [2]

Answer:

Explanation:

There is the relation between the variable cost and the product cost & fixed cost and the period cost

The product cost is that cost which is used to make the product. It includes direct material, direct labor, and the manufacturing overhead

In mathematically,

Product cost = Direct material + direct labor + manufacturing overhead

The period cost is that cost which remain fixed and is incurred when the time passes

Period cost = Salaries of sales person + delivery trucks depreciation + Repairs to office equipment + Advertising expense + usage of office supplies expense

So, the categorization is shown below:

Lumber used to construct decks ($12.00 per square foot) = Variable cost and Product cost

Carpenter labor used to construct decks ($10 per hour) = Variable cost and Product cost

Construction supervisor salary ($45,000 per year) = Fixed cost and the period cost

Depreciation on tools and equipment ($6,000 per year) = Fixed cost and the period cost

Selling and administrative expenses ($35,000 per year) = Fixed cost and the period cost

Rent on corporate office space ($34,000 per year) = Fixed cost and the period cost

Nails, glue, and other materials required to construct deck (varies per job) =

Variable cost and Product cost

3 0

2 years ago

Foster Industries manufactures 20,000 components per year. The manufacturing cost of the components was determined as follows: D

olasank [31]

Answer:

$25,000 increase

Explanation:

Cost of Manufacturing Amount

Direct Materials $150,000.00

Direct Labor $240,000.00

Inspecting products 60,000 x 0.90 $54,000.00

Providing Power 30,000 x 0.90 $27,000.00

Providing Supervision 40000 x 0.60 $24,000.00

Setting up Equipment 60000 x 0.50 $30,000.00

Moving Materials 20,000 x 0.50 $10,000.00

Total $535,000.00

Buying Cost (20000 x 25.50) $510,000.00

Incremental Saving by Purchase ( $535000-$510000) $25,000.00

3 0

3 years ago

Assume that you are the portfolio manager of the SF Fund, a $3 million hedge fund that contains the following stocks. The requir

borishaifa [10]

Answer:

11.11%

Explanation:

The full question with table is attached.

We need the rate of return formula using Capital Asset Pricing Model (CAPM). The formula is:

$R=R_f+\beta(R_m-R_f)$

Where

R is rate of return (what we need)

$R_f$ is risk-free return rate (5% = 0.05)

$R_m$ is the market rate of return (11% = 0.11)

To get $\beta$ , we take the weighted average of the portfolio.

Weight of Stock A = 1,075,000/3,000,000 = 0.3583

Weight of Stock B = 675,000/3,000,000 = 0.225

Weight of Stock C = 750,000/3,000,000 = 0.25

Weight of Stock D = 500,000/3,000,000 = 0.1667

Portfolio Beta = (0.3583*1.2) + (0.225*0.50) + (0.25*1.40) + (0.1667*0.75) = 1.02

Now, we calculate rate of return using CAPM formula:

$R=R_f+\beta(R_m-R_f)\\R=0.05+1.02(0.11-0.05)\\R=0.1112$

That is 11.12%, or from answer choice, it is 11.11%

7 0

3 years ago

A company is targeting consumers who have not purchased its products for several months. It is segmenting the consumer market ba

Nina [5.8K]

Answer:

Usage Rate.

Explanation:

A company is targeting consumers who have not purchased its products for several months. It is segmenting the consumer market based on usage rate. It is one of the type of behavioral segmentation where markets are segmented on the basis of consumers knowledge, response towards product, usage rate and attitude. Marketers divide the markets into nonusers, ex-users, potential users, first time users and regular users in order to target them accordingly.

3 0

2 years ago

Which of the following statements about the consumption component of GDP is not​ correct?

Which of the following statements about the consumption component of GDP is not correct?