C. Tariff
is a barrier of free trade and is a tax or duty in order to import items
Answer:
In order to determine the Macauly we must complete the following table:
period cash flow PV of Period x
cash flow PV cash flow
1 $3 $2.91 $2.91
2 $3 $2.83 $5.66
3 $3 $2.75 $8.25
4 $3 $2.67 $10.68
5 $3 $2.59 $12.95
6 $3 $2.51 $15.06
7 $3 $2.44 $17.08
8 $103 $81.31 $650.48
Total $723.07
Macauly duration = $723.07 / $87 = 8.31
Modified Macauly duration = Macauly duration / (1 + r) = 8.31 / 1.03 = 8.07
Net Operating Income on Year 2 will be lower than Year 1. The reason is the distribution of fixed production cost under absorption costing
<h3>What is
absorption costing?</h3>
Total absorption costing is an accounting cost method that includes the entire cost of manufacturing or providing a service. TAC includes not only material and labor costs, but also all manufacturing overheads. Each cost center's cost can be direct or indirect.
Insurance and rent are two examples. Absorption costing is an inventory valuation, which means it is a capitalized cost that is tracked on the balance sheet until the product is sold rather than a regular expense.
The finance manager can use the absorption costing formula (materials + labor + variable production overhead + fixed production overhead) (number of completed units) to estimate how much production expenses the company may incur.
To know more about absorption costing follow the link:
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The statement can be categorized as "False".
Knowledge entrepreneurship is not the same as 'conventional' financial enterprise in that it doesn't go for the acknowledgment of money related benefit, but concentrates on circumstances with the objective to enhance the production and all through of knowledge, instead of boosting monetary benefit.