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 is not part of manufacturing overhead for producing a computer? A. Manufacturing plant property taxes B.

adelina 88 [10]

Answer:

C. Depreciation on delivery trucks.

Explanation:

Depreciation on delivery trucks is not part of manufacturing overhead for producing a computer. Manufacturing overhead is also referred as factory burden, factory overhead or production overhead, which comprises of all the manufacturing costs such as electricity cost, factory supplies, factory labor (not direct one), rent, insurance, heating, water and all other energy related costs, salaries, cleaning, oiling, greasing, servicing and repairs etc.

Depreciation on delivery truck is not included in manufacturing overhead, whereas, remaining all other options are the part of it.

Manufacturing overhead are the sum of all of the indirect material, labor and any other cost which can not be identified easily with the products and units produced in the manufacturing plant. These are assigned to the every produced unit on equal basis. For example, if your overhead cost is $50000 for the last year and you have manufactured 5000 units, then by dividing $50000 by 5000 units you can get your manufacturing over head cost which is $10 per unit.

3 0

3 years ago

Deadweight losses occur when the quantity of an output produced is: less than, but not when it is greater than, the competitive

IRINA_888 [86]

I think the correct answer would be the first option. Deadweight losses occur when the quantity of an output produced is less than, but not when it is greater than, the competitive equilibrium quantity. It is also known as allocative inefficiency. It is a loss of efficiency that will happen when the equilibrium of a good is not reached or the supply and the demand of a good are not in equilibrium such that the quantity of the goods is less than the equilibrium quantity. It is a loss due to inefficient use of the resources available. Price controls, minimum wage and taxation are said to cause deadweight loss.

4 0

2 years ago

Cranium, Inc., purchases term papers from an overseas supplier under a continuous review system. The average demand for a popula

kykrilka [37]

Answer:

B) greater than $30 but less than $40

the actual result is $39

Explanation:

the options are missing:

A) less than or equal to $30

B) greater than $30 but less than $40

C) greater than $40 but less than $50

D) greater than $50

we must first calculate safety stock = (Z-score x √lead time x standard deviation of demand) + (Z-score x standard deviation of lead time x average demand)

Z-score for 98% confidence level = 2.326
standard deviation of demand = 30
√lead time = √5 = 2.23607
we are not given any standard deviation of lead time, so we can assume that it is 0

safety stock = (2.326 x √2.23607 x 30) + (2.326 x 0 x 300) = 156.03 ≈ 156 units

the annual holding cost of 156 units = 156 x $0.25 = $39

4 0

3 years ago

Why would it be better to be in a partnership?

s2008m [1.1K]

Answer:

A partnership is easy and inexpensive to establish

the business benefits from pooled knowledge and skills of different partners

the workload is shared

more partners can be added,which could help increase capital

partnerships are not compelled by law to complete audits on financial statements

Explanation:

6 0

2 years ago

Read 2 more answers

Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost

Ghella [55]

Answer:

See below

Explanation:

1. Predetermined overhead rates

= Applied overhead / Direct labor

Job 114

Applied overhead / direct labor

= $1,260/1,800

= 70%

Job 115

Applied overhead / direct labor

= $994/1,420

= 70%

Job 116

Applied overhead / direct labor

= $3,094/4,420

= 70%

2 and 3 Ending balance of each job and work in process as of April 30th.

Job 114. Job116

Opening. $2,384. $3,085

Materials

Purchases $16,800. $5,410

Direct labor

($1,800+$1,800) $3,600. $5,740

Actual $2,520 $4,018

Overhead

at 59.36%

Balance $25,304. $18,253

• Note

The whole of job 115 has been sold out.

• Actual overhead = Actual overhead / direct labor

= $4,535/7,640

= 59.36%

4 Cost of goods sold in April

Job 115

Opening materials. $2,603

Purchases. $12,460

Direct labor

($1,420 + $3,080). $4,500

Actual overhead. $3,150

at 59.36%

Cost of goods sold $22,713

5. Selling price of job

Cost of job 115 = $22,713

Selling price = 1.25% × $22,713 = $28,391

4 0

2 years ago