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Vadim26 [7]
3 years ago
11

7.3. Explain how a society’s decision to produce capital (i.e., machinery) or consumer goods will impact future growth.

Business
1 answer:
zubka84 [21]3 years ago
4 0

Answer:

Production of capital goods will generate future growth

Explanation:

Consumer goods are goods produced for consumption and cannot be used as inputs for the production of other consumer goods while capital goods are  tangible assets such as plant and machinery which are used in the production of goods or services; and such goods and services still serve an input for the production of consumer goods.

Therefore, if a society decides to produce capital goods it will create economic growth because they are seen as economic capital. Countries usually pay attention to capital goods because they play a generating role in the improvement of the productive capacity of a country

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Fixed costs can be defined as costs that A. vary inversely with production. B. vary in proportion with production. C. are incurr
goldfiish [28.3K]

Answer:

D. are incurred even if nothing is produced.

Explanation:

There are primarily two types of costs, i.e. the variable cost and the fixed cost. The variable cost is the cost that varies when the level of production changes, while the fixed cost is the cost that remains unchanged whether the level of production changes or not

So, by the above explanation, we can conclude that the fixed cost can be incurred if there is nothing to be produced.

4 0
3 years ago
If the price of a sofa is $800 in the u.s. and 2400 pesos in argentina, and the exchange rate is 4 pesos per dollar, what is the
Vesnalui [34]
The real exchange rate ( RER ) is the ratio of the price level abroad and the domestic price level.
RER = ( Nominal Exchange Rate x Foreign Price ) / ( Domestic Price )
The price of sofa is 2,400 pesos in Argentina and the nominal exchange rate is 4 pesos per dollar (  2,400 : 4 = $600 )
RER = 4 x $600 / $800 = 3
Answer: The Real Exchange Rate is 3 pesos per dollar.
4 0
3 years ago
If Management was not concerned with the time value of money, from which two capital budgeting methods should they choose?
Neporo4naja [7]

Answer:

ARR or Payback

Explanation:

Here are the options to this question

Multiple Choice

BET or IRR

ARR or Payback

NPV or IRR

NPV or Payback

BET or NPV

Accounting rate of return = Average net income / Average book value  

Average book value = (cost of equipment - salvage value) / 2

Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows

Payback period = Amount invested / cash flow

The NPV and IRR considers the time value of money by discounting the cash flow at discount rate.

Net present value is the present value of after tax cash flows from an investment less the amount invested.

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

7 0
3 years ago
The Bogart Company produces 5,000 units of item SLM 46 annually at a total cost of $200,000
sertanlavr [38]

Answer:

Option B is the answer

Explanation:

Avoidable costs = 20,000+55,000+45,000 + (8*5000)+30,000

= 190,000

= 190,000/5,000 units

= $38 Option B is the answer

3 0
3 years ago
Soda is the largest bottler of Soda in Western Europe. The company purchases Brand 1 and Brand 2 concentrate from The Soda Compa
Dmitry [639]

Answer and explanation:

<em>check the attached file for a well formatted answer</em>

The purchase budget for the month of Mar 2012 is asked. Also there are no changes in beginning and closing inventories. The data given is summarised as below,

Brand 1 Brand 2

Bottle size 2 lit 2 lit

Number of bottles 106000 81000

Concentrate cost $85 per pound

Concentrate used 0.15 lb per 100 lit 0.2 lb per 100 lit

Carbonated water used 2 lit 2 lit

Bottle cost $0.1 per bottle

Carbonated water cost $0.08 per litre

Based on this the budget is filled as below,

CONCENTRATE 2-LITRE BOTTLES CARBONATED WATER

Brand 1 (A)  

318 lbs

[=106000*2/100*0.15 lbs]

106000 bottles  

212000 litres

[106000 bottles * 2 litres]

Brand 2 (B)  

324 lbs

[=81000*2/100*0.2 lbs]

81000 bottles  

162000

[81000 bottles * 2 litres]

Total Materials (C=A+B) 642 lbs 187000 bottles 374000 litres

Direct materials unit price (D) $ 85 $ 0.1 $ 0.08

Total direct materials to be purchased (E=C*D) $54570 $18700 $29920

7 0
3 years ago
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