All categories

3 years ago

When money is used to express the value of goods and services, it is functioning as a?

2 answers:

8 0

The term money is used to describe anything that is regularly used in economic transactions or exchanges.
When money is used to express the value of goods and services, it is functioning as a unit of account.
This is the primary function of money, to be used a unit by which value of a thing is accounted and compared.

mamaluj [8]3 years ago

3 0

Unit of account. The unit of account is used in economics to measure currency that is being used to represent the real value or cost of an economic item. These items can be goods, services, assets, liabilities, income and/or expenses. Units of account is one of the three well-known functions of money.

You might be interested in

Profit on sale of fixed assets is used to creat

Nadya [2.5K]

Answer:

profit and loss account

Explanation:

The turnover ratio of total working capital shows the success of working capital management. It is in fact a ratio that expresses how many times on average, during one year, working capital was used to pay the total expenses of the company.

A combination of data from the balance sheet and income statement is obtained, more specifically, it is the ratio of total business spread and average working capital of the company

4 0

3 years ago

Carrejo Corporation has two divisions: Division M and Division N. Data from the most recent month appear below:

ivann1987 [24]

Answer:

Break-even point (dollars)= $219,656

Explanation:

Giving the following information:

Division N

Sales= $223,000

Variable expenses= 86,970

Contribution margin= 136,030

Traceable fixed expenses= 105,000

Segment margin= 31,030

Common fixed expenses= 28,990

To calculate the break-even point in dollars for Division N, we need to use the following formula:

Break-even point (dollars)= fixed costs/ contribution margin ratio

contribution margin ratio= (sales - variable costs) / sales

Break-even point (dollars)= (105,000 + 28,990) / (136,030/223,000)

Break-even point (dollars)= $219,656

4 0

3 years ago

Curly’s Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $43,000 per year forever.

evablogger [386]

Answer:

rate = 6.3235%

At a market rate of 6.3235% this will be a fair deal

Explanation:

under perpetuities the principal is never redeem. the investor receive cash payment for an indefinite period of time

This means:

perpetuities present value = C/r

where:

C= annual payment

r= rate

680,000 = 43,000/rate

43,000/680,000 = rate

0.06323529 = rate

rate = 6.3235%

5 0

3 years ago

At the cost-minimizing combination of factors: Select one: a. the MPP of all factors will be equal b. the MFC of all factors wil

kow [346]

Answer:

D) the ratio of MPP to factor price will be the same for all factors

Explanation:

The ratio of marginal physical product (MPP) is calculated by dividing the change in total physical output by change in variable input.

In order to minimize costs, producers must combine factors so that the ratio of MPP to factor price will be the same for all factors. This way the amount of physical product produced with require the constant additions of factors of production, in other words, the marginal cost remains constant.

6 0

3 years ago

How much money has to be invested at 5.1% interest compounded continuously to have $17,000 after 14 years?

andre [41]

We will use the formula; A = Pe^(r*t)
Given;
A = 17,000
r = 5.1%
t = 14
Solution;A = Pe^(r*t) Compounding continously
17,000 = Pe^(.051*14)
17,000/e^(.714) = P
$8324.59 = P
The money that has been invested at 5.1% interest and compounded contiounsly to have 17,000 after 14 years is $8324.59

8 0

3 years ago