You have to make sure all debits and credits in the account are accounted for. if you are balancing your checkbook, then your bottom amount should match your bank statement
$20,000 is correct
When they ask for the amount the bank can "create" they are really asking for the <u>change in the money supply</u><u>.</u> They are required to reserve 20%, so they can loan out 80%
80% * $5,000= $4,000
Now, the bank can use this $4,000 by loaning it out to other customers and earning interest on those loans. The customers can use the money for investments or spending. So the first little deposit of $5,000 has now spread to a lot more people and created a lot more opportunity for growth. This is known as the <u>multiplier effect.</u> To put the multiplier effect in dollar amounts, we need to know how much we are multiplying by. This is called the <u>deposit multiplyer</u> and the formula is 1/(required reserve ratio). The reserve ratio here is 20% or .2
1/(.2)= 5
Our deposit multiplier which will calculate the multiplier effect on the money supply (aka the amount the bank can "create") is 5
5* $4,000= $20,000
Answer:
full costing
Explanation:
Total costing often recognized as absorption costing is utilized to assess A commodity's complete and total expense. The method is most widely used to document in the financial reports the full amount of the product.
This form of costing becomes necessary under many accounting structures for internal controls like Generally Accepted Accounting Principles as well as International Financial Reporting Standards and income tax reporting.
The basic principle underlying complete costing is to allocate all variable costs to something like a cost item and also overhead cost assignment. A cost subject is something that gathers cost information, such as with a consumer, inventory, facility, shop, geographical region, product line, etc.
Answer:
a. What is the MRP per driver per day?
- the marginal revenue product per driver = 60 packages x $20 = $1,200 per day
b. Now suppose that a union forces the company to place a supervisor in each vehicle at a cost of $300 per supervisor per day. The presence of the supervisor causes the number of packages delivered per vehicle per day to rise to 60 packages per day What is the MRP per supervisor per day? By how much per vehicle per day do firm profits fall after supervisors are introduced?
- if the drivers were already delivering 60 packages per day without the supervisor, then the addition of the supervisor doesn't change anything. So the MRP of the supervisor is $0. That means that the company's profits will decrease by $300 per day due to the supervisors.
c. How many packages per day would each vehicle have to deliver in order to maintain the firm's profit per vehicle after supervisors are introduced?
- $300 / 20 = 15 packages per day
- in order to maintain the profit per vehicle, each team of delivery man + supervisor should be able to deliver 75 packages per day.
d. Suppose that the number of packages delivered per day cannot be increased but that the price per deliver might potentially be raised. What price would the firm have to charge for each delivery in order to maintain the firm's profit per vehicle after supervisors are introduced?
- $300 / 60 = $5
- the price of each package delivered should increase by $5 to $25 per package.
Answer:
The materials are the direct materials or the raw materials that are worked on. Production means manufacturing or making. It includes all expenses directly or indirectly linked with the Production such as direct labor and Manufacturing Overheads etc. Manufacturing overheads only include those expenses which are indirectly used in the production. Expenses with sales are used for the storage or sales of products.
Explanation:
Materials,
2. Raw materials used
Production, includes Direct Labor and Manufacturing Overheads
1. Direct labor
Manufacturing Overhead would include
3. Indirect materials and supplies
4. Repairs to factory building
5. Depreciation of factory equipment
Sales include
6. Office supplies expense
7. Advertising expense
Manufacturing Overhead would include
3. Indirect materials and supplies
4. Repairs to factory building
5. Depreciation of factory equipment