ANSWER: The correct answer is True. Consumer price Index computes inflation or market basket of consumers.
Explanation: It measures the price changes in the goods or services basket for consumers which represents the consumption expenditure in the economy. It is calculated on various categories or sub- categories like,urban or rural. It measures the inflation rate and scans the percentage change of the index over a period of time. It measures increase in the price of households basket.
Answer:
$10,000
Explanation:
We need to find the segment margin of the deparment, which is equal to annual contribution margin minus avoidable fixed costs:
Wallen Corporation
Annual contribution margin $80,000
Annual fixed costs $160,000
Unavoidable fixed costs $90,000
Avoidable fixed costs $70,000
Segment Margin = Annual contribution margin - avoidable fixed costs
= $80,000 - $70,000
= $10,000
Therefore, if the company eliminated this department, it would have a financial advantage of $10,000, equivalent to the deparment's current segment margin.
Answer:
C) $4,000
Explanation:
To calculate economic profit we can use the following formula:
economic profit = total revenue - (accounting costs + implicit costs) = (total revenue - accounting cost) - implicit costs
where:
- accounting profit = total revenue - accounting cost = $50,000
- implicit costs: ($20,000 x 5%) + $45,000 = $1,000 + $45,000 = $46,000
economic profit = $50,000 - $46,000 = $4,000
Answer: necessity entrepreneur
Explanation: While an entrepreneur is described as someone who organizes and operates a business venture and assumes much of the associated risks, necessity entrepreneurs only do so out of necessity (the quality or state of being necessary, unavoidable, or absolute requisite). As such, they are individuals ranging from educated persons to street sellers especially in developing countries who create small businesses or enterprises out of the need to survive. In Michael Peters' case, he lost his job due to downsizing which caused him to apply his skills and talents to starting up a business.
