Answer:
The answer is: A) If taxes are lowered, government revenues actually increase.
Explanation:
For example, when consumers have to pay less money in taxes, it means they will have more money to spend. Private consumption is the most important component of the GDP. When money starts to flow, a virtuous circle of growth starts a chain of events that reinforces economic growth through a feedback loop. When the economic growth rate increases, government revenue will also increase. The virtuous circle of growth is the most important pillar of the Keynesian economic theory.
The same applies to businesses, when they pay less taxes, they can invest more in new businesses which in turn increase economic growth, which results in higher revenue for the government.
Of course this theory applies to certain small tax reductions, and under certain specific circumstances.
Answer:
Corporation
Explanation:
The corporation is a legal business entity that is separated from its owners with respect to the assets and liabilities.
In this business entity, they have the right to received, owned or even transferred the property who are entered into contracts with the other legal entities or with the individuals
In addition, this business entity is to be sued and sued to the individual or other business entities depending upon which entity or individual it is dealing with in the court.
Answer:
C. Significant amounts of indirect costs are allocated using only one or two cost pools.
D. All or most indirect costs are identified as output unit-level costs.
E. Products make diverse demands on resources because of differences in volume, process steps, batch size, or complexity.
F. Products that a company is well suited to make and sell show small profits, whereas products that a company is less suited to produce and sell show large profits.
Explanation:
ABC (activity based costs) method focuses on individual activities as the main cost objects. After it determines the cost of individual activities, it uses them as the basis for assigning costs to products and services. ABC method allocates overhead costs based on the main cost objects.
Answer:
26.65
Explanation:
The computation of the book value of an ordinary share is shown below
But before that the following calculations to be done
Balance for equity shares is
= Total shareholder equity - dividend paid to preference shareholders - redemption of preference shares
= 8,250,000 - (20,000 × 100 × 12% ×3) - (20,000 × 110)
= 8,250,000 - 720,000 - 2,200,000
= 5,330,000
And, the number of shares is 200,000
So, the book value of the ordinary share is
= 5,330,000 ÷ 200,000
= 26.65
Part 1.1 - Variable overhead cost incurred to fill the order for the 120,000 items is $7,800.
Part 1.2 - Difference between standard and actual variable overhead cost is $440.
Part 3
- Difference between standard and actual variable overhead cost is $440.
<u>Explanation:</u>
It is given that the number of order is 120,000 items and calculated standard variable overhead cost per order for one item is $0.065. Variable overhead cost incurred to fill the order for the 120,000 items can be calculated by multiplying the number of order of the items with the calculated standard variable overhead cost per order for one item. Hence, the variable overhead cost incurred to fill the order for the 120,000 items is $7,800.
It is given that the actual variable overhead cost is $7,360 and calculated standard variable overhead cost is $7,800. Difference in standard and actual variable overhead cost can be calculated by deducting the actual variable overhead cost from the standard variable overhead cost. Hence, the difference between standard and actual variable overhead cost is $440.
Calculated variable overhead rate variance is $115 favorable and the variable overhead efficiency variance is $325 favorable. Difference between standard and actual variable overhead cost is the total of variable overhead rate variance and variable overhead efficiency variance. Hence, the difference between standard and actual variable overhead cost is $440.
