Answer:
The statement is: False.
Explanation:
The Gross Domestic Product or GDP is the metric that measures the performance of an economy over a period. The components of the GDP are private consumption, government expenses, investments, and net exports (exports minus imports).
Goods and services produced in previous periods are not considered in the GDP of the current period. Thus, in the case, <em>George's house revenue after the sale will not be part of the GDP. However, </em><u><em>the commission George has to pay to the real estate agent will be considered in the current year's GDP</em></u><em>.</em>
Answer:
Variable Cost $893,520
Fixed Cost $128,000
Total Cost $1,021,520
Explanation:
Calculation to determine the costs to insource the security services
VARIABLE COST
Using this formula
Variable cost =Total Quantity of Output x Variable Cost Per Unit
Let plug in the formula
Variable cost =3* ($34/hour x 24 hours/day x 365 days per year)
Variable cost = $893,520
FIXED COST
Using this formula
Fixed cost=Salary and Benefits for a full time security service manager+Other Fixed Costs
Let plug in the formula
Fixed cost=($99,000) + ($29,000)
Fixed cost= $128,000
TOTAL COST
Using this formula
Total Cost = Variable Cost + Fixed Cost
Let plug in the formula
Total Cost=($893,520) + ($128,000)
Total Cost= $1,021,520
Therefore the costs to insource the security services will be:
Variable Cost $893,520
Fixed Cost $128,000
Total Cost $1,021,520
Answer: $1,031 million
Explanation:
Given that,
Retained earnings(2010) = $14,329 million
Retained earnings(2009) = $13,157 million
Net income(2010) = $2,203 million
Amount of dividends = Retained earnings(2009) + Net income(2010) - Retained earnings(2010)
= $13,157 million + $2,203 million - $14,329 million
= $1,031 million
Therefore, amount of dividends did Colgate-Palmolive pay to its shareholders in 2010 is $1,031 million.
Answer: 1. D) Assets are understated
2. D) Car dealers
Explanation:
1. The shipping costs to bring Inventory into a business are known as Carriage Inwards. This amount is to be debited with the Inventory as it is considered to be part of the cost of acquiring the inventory. By not putting this cost with the inventory, ABC is undervaluing the inventory account which is an Asset account. The Assets are therefore understated.
2. The Specific Identification Method of inventory valuation is based on each individual unit purchased or sold. It does not group items and tracks each item from the moment it is purchased to the moment it is sold so the cost of the specific inventory is known. This method is used more often by businesses that deal with easily identifiable items such as Jewellers and Car dealers because each car is big enough to be tracked individually.
Answer:
57 days
Explanation:
The computation of the cash conversion cycle is shown below:
The cash conversion cycle = Days inventory outstanding + days sale outstanding - days payable outstanding
= 54 days + 34 days - 31 days
= 57 days
Hence, the cash conversion cycle is 57 days
We simply added the days' sales in inventory and days sales' outstanding and deduct the days payable outstanding so that the cash conversion cycle could come
