The index method of cost estimation is used when we want to do the comparison between the cost of something today with the cost in the past.
Given that the index method of cost estimation is given by an=ck(in/ik).
We are required to give the time or situation in which we have to use index method to determine the cost.
A cost index is basically a ratio of the cost of something today to its cost at some time in the past. As such, it is a tool which is used to estimate the cost of things today based on their cost some time ago.
From the definition of cost index we can say that the index method of cost estimation is used when we want to do the comparison between the cost of something today with the cost in the past. This method is basically used in statistical or economics departments of the government of a country.
Hence the index method of cost estimation is used when we want to do the comparison between the cost of something today with the cost in the past.
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Three reasons that the Protectionist offer to support their position
is as follows: Imposing tariffs, campaign to support use of countries own
produced products, and controlling the exchange rate in their country. This policies
and reasons help their country to protect their own goods and will help their
economy rise.
A business reported a $3,900 interest charge, a $16,600 profit before interest and taxes, and a $7,000 profit overall. The ratio of times interest earned by the corporation is 4.26.
<h3>What does the ratio of times interest earned indicate?</h3>
The times interest earned ratio measures a company's solvency by determining if it generates enough revenue to cover its debt. It specifically contrasts the revenue generated by a business before taxes and interest with the interest costs associated with its debt obligations.
The interest coverage ratio, sometimes referred to as the times interest earned (TIE) ratio, gauges how readily a business can settle its debts with its present income. Divide revenue by the total amount of interest due on bonds or other types of debt to arrive at this ratio.
Times Interest Earned Ratio = prior to interest costs and taxes on income / Interest Expense
Times Interest Earned Ratio = $16,600 / $3,900 = 4.26
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Answer:
Lorland
Zhangia
sandals
smoothies
Explanation:
A country should specialise goods for which it has a comparative advantage in its production.
A country should import goods for which it has no comparative advantage in its production.
A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.
Lorland
Opportunity cost in the production of one smoothie = 8/2 = 4
Opportunity cost in the production of one sandal = 2/8 = 0.25
Zhangia
Opportunity cost in the production of one smoothie = 5/1 = 5
Opportunity cost in the production of one sandal = 1/5 = 0.2
Zhangia has a comparative advantage inn the production of sandals and should specialise in the production of sandals while lorland has a comparative advantage in the production of smoothies specialise in the production of smoothies
Loriland should import sandals and export smoothies