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REY [17]
2 years ago
12

Assuming that the physical output (i.e., the actual quantity of all final goods and services) of all final goods and services re

mains constant, if the general price level in the economy triples, so does nominal output.
a) true
b) false
Business
1 answer:
joja [24]2 years ago
5 0

Answer:

a) true

Explanation:

A rise in the general price level is called inflation and it affects the nominal value of the company's output. E.g. you sell pants and last year they sold at $10 and now since inflation rate is 10%, they sell at $11. But inflation only affects nominal values, it doesn't affect real values which are calculated using a base price of a certain year X, times the quantity sold. Following the example, your real output would not be $11 per pair of pants, instead it would still remain at $10 since the inflation is discounted.

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The Chilton Corporation specializes in manufacturing one type of desk lamp. Chilton allocates variable manufacturing overhead co
Sloan [31]

Answer:

See below

Explanation:

Given the above information, we can compute variable manufacturing overhead efficiency variance to be;

= (SA - AQ) × SR

Where

Standard quantity = SQ = 19,000

Actual Quantity = AQ = 7,600

Standard Rate = SR = $1.9

Variable manufacturing overhead efficiency variance

= [(19,000 × 0.3) - 7,600] × $1.9

= (5,700 - 7,600) × $1.9

= $3,610 U

3 0
2 years ago
The industry-low, industry-average, and industry-high cost benchmarks on pp. 5-6 of the latest issue of the glo-bus statistical
Likurg_2 [28]
<span>the industry-low, industry-average, and industry-high cost benchmarks on pp. 5-6 of the latest issue of the glo-bus statistical review 

ANSWER: 
</span><span>are worth careful scrutiny by the managers of all companies because when a company's costs for one or more of the cost benchmarks are deemed "out-of-line," managers need to initiate corrective actions in the next decision round. </span>
5 0
3 years ago
Granfield Company has a piece of manufacturing equipment with a book value of $35,500 and a remaining useful life of four years.
Doss [256]

Answer: Option (e) is correct.

Explanation:

Given that,

Book value of manufacturing equipment = $35,500

Current market value of equipment = $21,100

Cost of new machine = $111,000

cash received from trading old machine = $21,100

Variable manufacturing costs of new machine reduce by $18,100 per year over the four-year =

Total increase/decrease in net income = Cost of new machine + cash received from trading old machine + Reduction in Variable manufacturing costs

                                                =  ($111,000) + $21,100 + $18,100 × 4

                                                = ($17,500)

Note: Bracket represents the negative values.

∴ The total decrease in net income by replacing the current machine with the new machine is $17,500.

7 0
3 years ago
Laura is a gourmet chef who runs a small catering business in a competitive industry. Laura specializes in making wedding cakes.
Tanya [424]

Answer:

The correct answer is option a.

Explanation:

The monthly total revenue is $5,000.

The marginal cost of producing 19th, 20th and 21st unit is $200.

Laura will earn profit if the price is able to cover marginal cost.

Total revenue is the product of price and quantity.

Price of cake when Laura produces 19 units

= \frac{TR}{Q}

= \frac{5,000}{19}

= $263.15

Price of cake when Laura produces 20 units

= \frac{TR}{Q}

= \frac{5,000}{20}

= $250

Price of cake when Laura produces 21 units

= \frac{TR}{Q}

= \frac{5,000}{19}

= $238.09

So we see that the price is able to cover marginal cost till 21st units, so Laura should produce more than 20 units and go on producing till price becomes equal to marginal cost.

4 0
3 years ago
On January 1, 2020, Klosterman Company issued $500,000, 10%, 10-year bonds at face value. Interest is payable annually on Januar
Ede4ka [16]

Answer and Explanation:

Journal entry to record the issuance of the bonds.

A.

Jan 1

Dr cash $500,000

Cr bonds payable $500,000

B. Journal entry to record the accrual of the interest

Dec 31 2020

Dr Interest expense $25,000

Cr Interest Payable $25,000

C. Journal entry to record the payment of interest on January 1, 2021.

Dr Interest expense $25,000

Cr Cash $25,0000

Interest expense $500,000×10%×1/2=$25,000

3 0
2 years ago
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