Answer:
Analysts measure the cost of a bundle of goods representative of overall spending at two points in time and compare the difference in cost.
Explanation:
Inflation refers to a situation in which there is a rise in the price level of the goods in an economy at a particular point of time.
For determining inflation, we need to compare the cost of buying certain baskets of goods in the current year and the cost of buying same basket of goods in the previous year. So that we are able to find the exact rise in the price level of the goods.
We need to analyse the cost of the same basket of goods for the two different periods. Hence, we will get the most appropriate values of the inflation.
Answer and Explanation:
The amount and the journal entry is shown below:
a. Amortization Expense - Patents $35,000 ($315,000 ÷ 9 years)
To Patents $35,000
(Being amortization expense is recorded)
b Amortization Expense - Patent $2,600 ($46,800 ÷ 18 years)
To Patents $2,600
(Being amortization expense is recorded)
c Amortization Expense - Franchises $18,000 ($72,000 ÷ 4)
To Franchises $18,000
(Being amortization expense is recorded)
Answer:
B. To weigh the various alternatives and choose a course of action
Explanation:
The major steps involved in a proper decision-making process include; Identifying the problem, understanding the problem by obtaining the necessary information, developing alternatives, choosing the best alternative that would address the ethical issue at hand, and implementing the best alternative.
The aim of the entire process of decision-making would be faulted if at the end, a course of action is not taken. The decision made at the end of the day, should address the initial concern raised. This decision would also need to be reviewed to ensure that it is the right step.
Determining ways to maximize profit for the company may not be the issue at hand, as several factors could inform the decision making process.
Answer:
They would need to buy $64,068.981 in U.S treasury bonds on Ava's second birthday to ultimately provide $120,000 for college expenses in 16 years.
Explanation:
The initial amount to be invested in order to yield $120,000 after 16 years can be expressed as;
F.V=P.V(1+R)^n
where;
F.V=future value of investment
P.V=present value of investment
R=annual interest rate
n=number of years
In our case;
F.V=$120,000
P.V=unknown
R=4%=4/100=0.04
n=16 years
replacing;
120,000=P.V(1+0.04)^(16)
120,000=P.V(1.04)^16
120,000=1.873 P.V
P.V=120,000/1.873
P.V=$64,068.981
They would need to buy $64,068.981 in U.S treasury bonds on Ava's second birthday to ultimately provide $120,000 for college expenses in 16 years.
Answer:
low-ball technique
Explanation:
Low-ball technique is a method used to persuade buyers make a purchase by offering a product at low price to get the customer to commit. The price is then increased.
This is a method commonly used by sales people.
In the given scenario this was used by the salesman when a couple orally agrees to purchase an appliance at a special price, he tells them he misquoted the price, indicating it was only available for an out-of-stock model with fewer options.
Since the couple had made a commitment to buy the particular appliance, they still buy at the higher price.
