The correct option is B
<u>Explanation:</u>
In an economy, planned investment spending is always equal to planned saving. If actual saving falls short of (exceeds) planned saving, then actual investment falls short of (exceeds) planned investment.
That is the other part of the saving paradox. If an economy produces too much, such that saving is greater than planned investment, inventory will build up, giving signal to producers to reduce output, to restore equilibrium. Such investment scheme is suitable only to communist countries. Keynes has another investment theory in his liquidity story. But investment theories are equally a posterior.
Therefore, Option B is correct
Answer: Option (d)
Explanation:
Under this case the write off will be as follow:
Debit Credit
Allowance for doubtful accounts 25,200
Accounts receivables 25,200
Here, in this case the Allowance for the doubtful accounts and Accounts receivables are further decreased as the outcome of the transaction made. Thus, there will be no further effect on working capital. Therefore the $30,000 that is bad debt would then be stated as the credit to allowance account. This will then decrease the working capital by $30,000.
Answer:
Product costs= $259,700
Explanation:
Giving the following information:
Direct materials $ 168,800
Direct labor $ 90,900
<u>The product costs are all expenses directly involved in the production. It generally involves the prime costs (direct material and direct labor).</u>
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Product costs= direct material + direct labor
Product costs= 168,800 + 90,900
Product costs= $259,700
A) strategic
B) tactical
C) operational
D) short-term
E) none of the above
its b tactical
