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3 years ago

Do businesses welcome or oppose government intervention? why?

1 answer:

7 0

Oppose. Generally Government intervention causes the product productivity curve to shift left. This is due to the fact that regulating businesses restricts their ability to use more cost effective methods for production. (However, complete deregulation of business can result in mass environmental damage and can be a contributing factor for the bursting of an economy I.E the Great Depression in the 1920s was due to a lack of regulation.)

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Personality Test

NemiM [27]

Answer:

1. cloths

2. food

3. knives

4. guns

Explanation:

5 0

3 years ago

Read 2 more answers

A foreign subsidiary's functional currency is its local currency, which has not experienced significant inflation. The weighted

musickatia [10]

Answer:

b) Yes Yes

Explanation:

Wage expenses are a cost incurred by the companies to pay to the hourly employees and may also include the payroll taxes and the benefits that are paid to the employees. The weighted average exchange rate may vary from one year to another depending on the number of the business days.

Sales to the customers would also be not affected as the changes in the exchange rates by the foreign subsidy functional currency in ts local currency has not been inflated.

4 0

3 years ago

Activities included (and not included) in the calculation of GDP

kicyunya [14]

Answer:

Included in 2020 GDP

1. Chocolate Express, a Swiss chocolate company, produces a chocolate bar at a plant in Illinois on December 14, 2020. An elementary school student buys the chocolate bar on December 24.

4. Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 6, 2020. It sells the car at a dealership in San Francisco on February 2, 2020.

5. Roadway Motors, a U.S. automobile company, produces a convertible at a plant in Germany on March 11, 2020. Roadway Motors imports the convertible into the United States on May 29, 2020.

NOT INCLUDED IN 2020 GDP

2. The Jones family buys an antique silver platter at an auction in upstate New York on March 11, 2020.

3. Graincorp, a U.S. agricultural company, produces corn syrup at a plant in Iowa on September 25, 2020. It sells the corn syrup to Crunchy's for use in the production of cereal that will be made in the United States in 2020

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

When exports exceeds import there is a trade deficit and when import exceeds import, there is a trade surplus.

Items not included in the calculation off GDP includes:

1. services not rendered to oneself

2. Activities not reported to the government

3. illegal activities

4. sale or purchase of used products

5. sale or purchase of intermediate products

The purchase of chocolate would be added to GDP as part of consumption spending on non durable items.

the purchase of the antique silver platter would not be added as part of GDP because it wasn't produced in 2020 and only goods produced in 2020 would be added to 2020 GDP.

The corn syrup is an intermediate good and it would not be added in the calculation of GDP. only final goods are added in the calculation of GDP.

The automobile would be added to GDP as part of investment spending by businesses.

the import of cars would be added as part of net export in 2020 GDP

5 0

3 years ago

Ramkissoon Midwifery's cost formula for its wages and salaries is $2,060 per month plus $442 per birth. For the month of July, t

OlgaM077 [116]

Answer:

option (a) $2,052 U

Explanation:

Data provided in the question:

Ramkissoon Midwifery's cost formula for its wages and salaries

= $2,060 per month + $442 per birth

Total number of births = 117

Actual births = 114

Actual wages and salaries for the month = $54,500

Now,

Spending variance = standard cost - Actual cost

= ( $2,060 × 1 ) + ( $442 × 114 ) - $54,500

= $2,060 + $50,388 - $54,500

= - $2052 or $2,052 U

Hence,

The answer is option (a) $2,052 U

6 0

3 years ago

Division A offers its product to outside markets for $30. It incurs variable costs of $11 per unit and fixed costs of $75,000 pe

olga55 [171]

Answer:

a. See part a below for the analysis.

b. We have:

1. Division A total cost = $1,131,000

2. Division A total profit or benefit = $1,509,000

3. Division B total cost = $1,320,000

4. Division A total profit or benefit = $44,000

Explanation:

Note: See the attached excel file for the calculation of calculation of costs and benefits of options available to Divisions A and B.

a. What are the costs and benefits of the alternatives available to Division A and Division B with respect to the transfer of Division A's product? Assume that Division A can market all that it can produce.

Under this condition, each analysis is based on the condition that either Division A or Division B will pay for the transportation cost.

From part a the attached excel file, we have:

1. Division A will incur a total cost of of $559,000 and gets a profit or benefit of $761,000 if it sells to the outside market.

2. Division A will incur a total cost of of $647,000 and gets a profit or benefit of $673,000 if it sells to Division B.

3. Division B will incur a total cost of $1,408,000 if it buys from Division A.

4. Division B will incur a total cost of $1,364,000 if it buys alternate supplier. It thereby saves the transportation cost of $88,000 of buying from A as a benefit.

b. How would your answer change if Division A had idle capacity sufficient to cover all of Division B's needs?

Under this condition, it is assumed that Division A will pay for the transportation cost. Therefore, Division A will sell to both the outside market and Division B.

From part b of the attached excel file, we will have the following based on this condition:

1. Division A total cost = Total cost of selling to the outside market + Total cost of selling to Division B = $559,000 + $572,000 = $1,131,000

2. Division A profit or benefit cost = Total profit or benefits of selling to the outside market + Total profit or benefits of selling to Division B = $761,000 + $748,000 = $1,509,000

3. Division B will incur a total cost of $1,320,000 by buying from Division A. It thereby saves $44,000 (i.e. $1,364,000 - $1,320,000 = $44,000) as a benefit for not buying from alternate supplier.

Download xlsx

3 0

3 years ago