All categories

3 years ago

The consumer price index (CPI) and the producer price index (PPI) actually measure the same economic factors.

Business

1 answer:

zlopas [31]3 years ago

8 0

Answer:

The statement is False.

Explanation:

First lets see what CPI and PPI are.

Consumer price index measures the change in the average prices of consumer goods and Services. The weighted average price of a selected consumer market is used for this.

Producers price index measures the changes in the prices of the output produced by the domestic producers.

However, there are certain factors that these 2 indices include and do not include.

CPI includes the sales and taxes paid for the products and services as they influence the consumers. however, PPI does not take in the sales and taxes.
PPI is somewhat broader than the CPI: PPI considers the change in average prices of producers in USA while CPI only take in to account the goods and services consumed by the US Urban consumers.
Because it is aimed at the consumers, CPI includes Imports. However, PPI does not include Imports.

You might be interested in

Which of the following types of business usuallly has the fastest invetory turn over ?

Irina18 [472]

D grocery store.

I looked on yahoo for answers and most of the people said grocery store. Someone said that “Grocery stores would see more sales per day.”

3 0

3 years ago

g A joint product is: Select one: a. Any product which consists of several parts. b. Any product produced by a company with more

mr_godi [17]

Answer:

The correct answer is letter "D": One of several products produced from a common input.

Explanation:

Joint products are those manufactured by large companies whose production process is the same at an early stage for all the different products being produced, but at a certain stage, called a split-off, the products begin to have their own characteristics.

Since the products initially come from the same input, the costs are allocated in the bundle. After the split-off, the cost of production is allocated to each type of product.

8 0

3 years ago

The following information relates to a company’s accounts receivable:

notka56 [123]

Answer:

1. $31,000

2. $40,000

Explanation:

1. Computation of bad debt expenses for the year

Bad debt expenses = Credit sales × Bad debts expenses

= $1,550,000 × 2%

= $31,000

2. Computation of year end balance

Year end balance = Beginning balance + Bad debt expense - Written off

= $31,000 + $31,000 - $22,000

= $40,000

Therefore for computing the bad debt expenses and year end balance we simply applied the above formula.

6 0

3 years ago

The assets of a company total $738,000; the liabilities, $219,000. what are the net assets?

ziro4ka [17]

739,000 - 219,000 = 520,000

The net assets are assets minus liabilities, so it is $520,000 in this case.

4 0

3 years ago

The long-term liability section of Rainbow Digital Corporation’s balance sheet as of December 31, 2020, included 10% bonds havin

Anon25 [30]

Answer:

Loss on early extinguishment = 1,008,357.64

Explanation:

Data:

T = Interest rate = 10% = 0.10

FA = Face amount = $1,000,000

RD = Remaining Discount = $139,294

Y = Yield rate = 12% = 0.12

RT = Retirement Time = 6/12 = 0.5

BA = Bonds at = 101% = 1.01

EE = Gain (loss) on early extinguishment = ?

IE = Interest Expense = ?

D = Discount on bond payable = ?

Calculations:

IE = Y * (FA - RD) * RT

IE = 0.12 * ($1,000,000 - $139,294) * 0.5 = 0.12 * $860,706 * 0.5 = $51,642.36

D = FA - [IE - (T * FA * RT)]

D = $1,000,000 - [$51,642.36 - (0.10 * $1,000,000 * 0.5)] = $1,000,000 - [$51,642.36 - $50,000] = $1,000,000 - $1,642.36 = $998,357.64

EE = FA - [D + (FA * BA)]

EE = $1,000,000 - [$998,357.64 + ($1,000,000 * 1.01)] = $1,000,000 - [$998,357.64 + $1,010,000] = $1,000,000 - 2,008,357.64 = -1,008,357.64

EE = -1,008,357.64 (Loss)

4 0

3 years ago