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marshall27 [118]
2 years ago
14

The standard price and quantity of direct materials are separated because a.GAAP and IFRS reporting requires separation b.standa

rd prices are more difficult to estimate than standard quantities c.standard quantities change more frequently than standard prices d.direct materials prices are controlled by the purchasing department and quantity used is controlled by the production department
Business
1 answer:
geniusboy [140]2 years ago
5 0

Answer:

The correct answer is letter "D": direct materials prices are controlled by the purchasing department and quantity used is controlled by the production department.

Explanation:

Standard price is the estimated price direct materials could have at the moment of ordering a purchase. Standard quantity refers to the forecasted number of units necessary for the production process of the firm. The two of them are separated to allocate each one to the department in charge of their providing accurate measures: <em>standard prices are set by the purchasing department while the standard quantity is estimated by the production department. </em>

The efficiency of standard price and quantity relies on the purchasing and production departments separately.

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In the equation of exchange, M x V = P x Q, the P represents ___________________.
Bogdan [553]

Answer:

P in the equation represents Price level

Explanation:

The equation above is referred to as the equation of exchange.

M = money supply, V= velocity of money, P= price level and Q= real output (real GDP)

P × Q gives the nominal GDP while M×V is the effective money supply.

The total value of goods and services available in the economy (represented by the nominal GDP) is equals to the total amount of money available to purchase them (the effective money supply.

The velocity of money is the rate at which money been is used or spent for transaction purposes in the economy. It is assumed to be constant.

For example, If there exist only a $1000 note in the economy, this amount just needs to be spent once to purchase a total nominal GDP of $1000. However, if there exist just one $500 note, then it means the $500 will need to be spent 2 times to purchase the total value of goods worth $1000. The 2 is the velocity of money

This equation is also used to explain the concept of the quantity theory of money.

The theory states that if an economy is operating at the full employment level, an increase in money supply will not impact the real GDP rather it will drive up the price level up. This idea forms the basis of the position of some economists that money supply drives inflation

The assumptions of the theory are as follows:

The velocity of money is constant

The the economy is at the full employment output. This implies that the economy is using all of its productive resources efficiently

3 0
3 years ago
After being frustrated by the lack of detailed, reliable, and up-to-date information available to help him decide where to go on
almond37 [142]

Answer:

TripAdvisor

Explanation:

TripAdvisor is a global travel company founded by Stephen Kaufer in February 2000.

Features available include price comparison, online reservations for transportation, reservation for lodging, travel experiences, and restaurant information.

The original idea was for a social media website that encouraged swapping of ideas relating to travelling. There was a button - Add your own review, and this promoted the growth and use of TripAdvisor because honest opinions are shared.

People tend to express their views on highs and lows of their experiences during holiday travels. This helps travelers make informed decisions when they want to travel, and also travel and hospitality services providers get to know areas they can improve.

7 0
3 years ago
What is an example of a scarce factor of production?
Maru [420]

Answer:

An example of scarce source of production is "Labour"

Explanation:

An example of scarce source of production is "Labour"

Labour

This refers to the work done by those who contribute to the production  processes.  Many people not in paid employment also provide things that are needed by  people. For example, a woman might not hold a job in order to raise her children  and look after the home.  Some people are more productive in the work place than others because they  have different levels of education, training and experience. They are said to  possess a greater amount of human capital.  This implies that this factor can be enhanced in an economy through educational  initiatives and investment in training.

7 0
3 years ago
Read 2 more answers
Under a partial release clause, a lender:
Lelechka [254]
D. Removes the lien from part of the property when part of the debt has been paid. This clause is used in commercial loans to allow a developer to repay part of the debt to remove the lien on part of the property. It is negotiated for agreed-upon payments to free multiple parcels of property separately to encourage development. 
3 0
3 years ago
A share of stock is now selling for $155. It will pay a dividend of $6 per share at the end of the year. Its beta is 1. What mus
Hoochie [10]

Answer:

$180

Explanation:

Expected return E(r) = \frac{(D1+ P1 -P0)}{P0}

D1= Next year's dividend

P1 = Next year's price

P0 = Current price

Since the beta is 1, it means this stock's return = market return = 20%

E(r) = \frac{(6+P1-155)}{155}

0.20 = \frac{P1-149}{155}

Multiply both sides by 155

31 = P1-149

Add 149 on both side s to solve for P1;

31+149 = P1

180 = P1

Therefore, the stock will sell at $180

3 0
3 years ago
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