Answer:
national savings plus capital inflow.
Explanation:
An open economy is one where both local and foreign parties are involved in trade activities. Trade items can be the traditional exchange of goods and services, or it can be managerial exchange and technological transfers.
So in an open economy total investment will be an addition of the national savings that local parties make, plus the capital inflows from foreign parties involved in trading in the country.
When the economy is not open total investment is equal to savings minus capital outflow
Answer:
$3,400
Explanation:
Out of five day workweek, accounting period ends on Thursday which indicates that employees work only for 4 days. Therefore, salaries are earned only for 4 working days and unpaid at the end of the accounting period
Salaries earned but unpaid= 4 working days * $850 per day = $3,400
Hence, salaries earned but unpaid at the end of the account period is $3,400
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Answer:
This method encourages the selling division to operate efficiently.
Explanation:
Absorption cost transfer pricing is very essential to determine the right amount in which goods and services will be sold in the market. It involves setting a price for a particular product with inclusion of all its variable costs.
Absorption cost transfer pricing enables an organization to maximise profit this is because all the different cost incurred during production are added to the price of the product.
Answer:
TRUE
Explanation:
Arguments for the specific identification method are as follows:
(1)It provides an accurate and ideal matching of costs and revenues because the cost is specifically identified with the sales price.
(2)The method is realistic and objective since it adheres to the actual physical flow of goods rather than an artificial flow of costs.
(3)Inventory is valued at actual cost instead of an assumed cost.
Arguments against the specific identification method include the following:
(1)The cost of using it restricts its use to goods of high unit value.
(2)The method is impractical for manufacturing processes or cases in which units are com-mingled and identity lost.
(3)It allows an artificial determination of income by permitting arbitrary selection of the items to be sold from a homogeneous group.
(4)It may not be a meaningful method of assigning costs in periods of changing price levels