Answer
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
The Answer is A) True
Explanation:
The marginal cost of production and marginal revenue are economic measures used to determine the amount of output and the price per unit of a product that will maximize profits. A rational company always seeks to optimize its profit, and the relationship between marginal revenue and the marginal cost of production helps to find the point at which this occurs. The point at which marginal revenue equals marginal cost maximizes a company's profit.
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Answer:
a. Net income in 2014 is $5.00 million; Net income in 2015 is $11.25 million; and Net income in 2016 is $8.75million.
b. The best summary is that under generally accepted accounting principles (GAAP), the cost-to-cost method is a method that is acceptable to be applied to contracts that span more than one accounting period.
Therefore, the cost-to-cost method is employed in calculating the revenue and net income for Frankel Construction for each of the years 2014, 2015 and 2016.
Explanation:
a. Calculate the amount of revenue, expense, and net income for each of the three years 2014 through 2016 using the cost-to-cost method.
Note: See the attached excel file for the calculations.
Cost-to-cost method can be described as a cost and revenue recognition approach in which all costs recorded to date on a project are divided by the total expected costs to be incurred on the project in order to obtain the overall percentage of completion of the project which is employed in estimating revenue and net income.
b. What best summarizes our conclusion about the usefulness of the cost-to-cost method for this company?
The best summary is that under generally accepted accounting principles (GAAP), the cost-to-cost method is a method that is acceptable to be applied to contracts that span more than one accounting period.
In this question, the cost-to-cost method is employed in calculating the revenue and net income for this company for each of the year 2014, 2015 and 2016.
Answer:
A. percentage of the working age population that is not employed.
D. understates the true degree of joblessness in the economy.
B. does not affect the employment-population ratio.
Explanation:
The employment population is the population which is not employed out of the total population willing to be employed.
Thus, in a population there are people who want to work, and are working and people who want to work, but cannot find work.
When a person who is unemployed drops out of the total labor force then the unemployment rate, will be understated which will clearly, not show the fair state of joblessness in the economy as the person without job is not included in labor force.
As the employment ratio is based on population and not on labor force the dropping of unemployed person from the labor force will not affect the employment ratio.
