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GarryVolchara [31]
3 years ago
13

If government tax revenues change automatically and in a countercylical direction over the course of the business cycle, this wo

uld be called a(n): 
A. Discretionary fiscal policy
B. Expansionary fiscal policy
C. Political business cycle
D. Nondiscretionary fiscal policy
Business
1 answer:
luda_lava [24]3 years ago
7 0

Answer: Option (C) is correct.

Explanation:

Correct Option: Political business cycle

If government tax revenues change automatically and in a countercylical direction over the course of the business cycle, this would be called a Political business cycle.

These cycles are present in macroeconomic variables such inflation rate, output and unemployment. There are two types of regime follow in this cycle are as follows:

(i) Regime A consist of expansionary polices which results in a economic growth and inflation. If the inflation rate is high enough then there is a withdrawal of policy.

(ii) Regime B consist of contractionary polices which results in reducing economic growth and inflation. It will become voted out if the unemployment is too high, replaced by Regime A. It generally lead to downward movement of the cycle.

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An appliance repair shop buys and uses about 4,212 fan motors annually. Holding cost is 27 dollars per motor per year, and order
Juli2301 [7.4K]

Answer:

15,251 units

Explanation:

The formula for Economic order quantity is;

EOQ = √2DS/H

Where,

D = Annual demand = 4,212

S = Ordering cost = $177

H = Holding cost = $27/4,212 = $0.00064102564

EOQ = √ 2 × 4,212 × $177 / $0.00064102564

EOQ = √ $1,491,048 / $0.00064102564

EOQ = √232603488.37

EOQ = 15,251 units

4 0
3 years ago
Stores such as T. J. Maxx, Burlington Coat Factory, and Marshalls buy manufacturers' seconds, overruns, returns, and off-season
Rama09 [41]

Answer: off price retailers

Explanation:  In simple words, it refers to the retailers that sells high quality products at relatively lower prices than market. The key to their business structure is the discount they offer as the majority of product they sell are of second hand quality or are off seasoned.

    They procure material directly from the suppliers in the form of scrap etc and then sells it to retailer at heavy discounts. Hence from the above we can conclude that the correct answer is off price retailers.

4 0
3 years ago
Given the following information: Percent of capital structure: Preferred stock 10 % Common equity (retained earnings) 40 Debt 50
sasho [114]

Answer: 8.23%

Explanation:

Firstly, we will calculate the cost of debt which will be:

= Yield (1-Tax rate)

= 9% × (1-0.34)

= 9% × 0.66

= 5.94%

Then, the Cmcost of preferred stock will be:

= 7/(104-9.40)

= 7/(94.6)

= 7.39%

We will also get the value of the cost of equity which will be:

= (Dividend expected common/Price common) + growth rate

= (2.50/76) + 8%

= 3.29% + 8%

= 11.29%

For Debt:

Cost after tax: 5.94

Weight = 50%

Weighted cost = 5.94 × 50% = 2.97

For Preferred stock:

Cost after tax: 7.39

Weight = 1%

Weighted cost = 7.39 × 10% = 0.74

For Common equity

Cost after tax: 11.29

Weight = 40%

Weighted cost = 11.29 × 40% = 4.52

Weighted average cost of capital = 2.97 + 0.74 + 4.52 = 8.23%

8 0
3 years ago
In December, Davis Company had the following cost flows: Molding Department Grinding Department Finishing Department Direct mate
slava [35]

Answer:

Required 1 ; Journals

Work In Process : Grinding Department $ 128,000 (debit)

Work In Process : Molding Department $ 128,000  (credit)

<em>Being transfer of costs from Molding to Grinding Department</em>

<em />

Work In Process : Molding Department $ 128,000  (debit)

Work In Process : Grinding Department $ 128,000 (credit)

<em>Being transfer of costs from Grinding to Molding Department</em>

<em />

Finished Goods Account $40,000 (debit)

Work In Process : Finishing Department $40,000 (credit)

<em>Being transfer of costs from Finishing department to finished goods account</em>

Required 2 : Difference

<u>Job Order Costing </u>

Each production is unique and there may be no transfers to and from other departments. The is no inventory from previous processes as this is unique to the job order.

<u>Process Costing (Currently in use)</u>

There are transfers from and to other departments. Production is in sequence. For each departments we may also have inventories

Explanation:

<u>Finishing Department Costs Calculation</u>

Direct materials           $17,200

Direct labor                  $11,600

Applied overhead        $11,200

Total                            $40,000

Difference :

You should be able to see that the Journal entries above depicts a process costing system. Now provide reasons why this system differs from the job-order cost system. See the reasons above.

<em />

8 0
3 years ago
What is the difference between Nepalese microeconomics and macroeconomics?
dangina [55]
Microeconomics study of particular markets, and segments of the economy. It looks at issues like consumer behavior, individuals labor markets, and film theory. Macroeconomics is the study of the whole economy. It looks at aggregate variables, such as aggregate demand, national output and inflation!!!
8 0
3 years ago
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