Answer:
the question is incomplete:
nominal interest rate = 5.07%
real interest rate = ?
inflation rate = 3.45%
approximate real interest rate = 5.07% - 3.45% = 1.62%
real interest rate = [(1 + 5.07%) / (1 + 3.45%)] - 1
real interest rate = (1.0507/1.0345) - 1 = 1.57%
You did not mention the possible answers, however, a federal system of a government is when there are many states or autonomous regions that each have their own laws and small governments, but they all belong to a large federation where there is a federal government which makes laws and decisions on a larger scale that apply to all states that are members of the federation.
Answer:
Recording fixed manufacturing overhead as element of the cost of plant assets constructed by a company for its own use:
a) When to exclude completely: During periods of low production activity, capitalization of fixed overhead costs would reduce the amount assigned to operational activities. This implies that profits will be overstated in some periods and understated in others.
b) When to include at the same rate as is charged to normal operations: To avoid misstatement of both plant assets and finished goods, it is important to allocate overhead costs at the same rate to plant asset construction as is done for normal operations.
Explanation:
Much of the fixed manufacturing overhead will be the depreciation costs for factory building and equipment. Sometimes, companies construct their plant assets internally. The problem arises when deciding whether to allocate fixed manufacturing overhead costs or not and when to allocate. The decision requires some thinking to decide when it is appropriate.
The license of the business could be revoked
