I do not agree with the given statement that is "Only variable costs can be differential costs.".
The difference in the costs of two alternative decisions is referred to as differential cost.
When a company is faced with several similar options, it must make a decision by selecting one and discarding the other.
Variable costs in cost accounting are costs that vary according to how much a company produces.
Variable costs are typically proportional to output.
As a result, the cost difference between two alternatives, rather than the fixed and variable nature of costs, is relevant for decision-making.
Hence, I disagree with the statement given in the question.
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Answer:
Predetermined manufacturing overhead rate= $171.89 per direct labor hour
Explanation:
<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Total direct labor hours= (500*0.4) + (1,000*0.2)= 400 direct labor hours
Predetermined manufacturing overhead rate= 68,756 / 400
Predetermined manufacturing overhead rate= $171.89 per direct labor hour
The compound interest formula is:
Where:
A is the amount you will have.
P is the money you are investing.
r: is the interest rate (in decimals)
n: number of times the interest is compounded per year
t: time (in years)
The first thing is converting the rate from percentage to decimal:
Since the interest is compounded every month and a year has 12 months n=12.
Now we can replace the values in our formula:
We can simplify the exponents to get:
Finally, we can use our calculator to get 288463.33
After 18 your balance in your bank account will be $288463.33
I believe the answer is: B.That it makes it possible for society to become better off by increasing both its production and its consumption.
Without trades, in order to fulfill all needs of the people, a country need to separate their time and resources to produce each of the needed products. With trades, a country could increase the production of the products in which they have a natural advantage at, and trade the products with other countries in case we need different product that we do not produce here.
Answer:
C. subsidizing: taxing
Explanation:
An activity generates a positive externality if the benefits of economic activities to third parties exceeds its costs.
Example of activities that generate positive externality are education and research.
Government ought to encourage the production of activities that generates postive externality. One of the ways this can be done is through Subsidy. Subsidy reduces cost of production and increases production.
An activity generates negative externality if the benefits of economic activities to third parties is less its costs.
An example of negative externality is pollution.
Government can discourage activities that generates negative externality by taxation. Taxation increases the cost of production and discourages production.
I hope my answer helps you
