Answer:
Fixed and Variable cost:
Fixed cost are the costs which cannot be changed with change in the level of goods and services sold or produced.
Variable cost are the costs which changes with change in the level of output produced and sold.
Product and Period cost:
Product costs are the costs which are incurred for making the product such as direct material, factory overhead and direct labor, etc.
Period costs refers to the cost which are incurred for a certain period of time. It is normally associated with the time period than with any type of transactional event.
Therefore, the classification of items is as follows:
(a) Variable cost - Product cost
(b) Variable cost - Product cost
(c) Fixed cost - Period cost
(d) Fixed cost - Period cost
(e) Fixed cost - Period cost
(f) Fixed cost - Period cost
(g) Variable cost - Product cost
(h) Fixed cost - Period cost
(i) Fixed cost - Period cost
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Answer:
Net capital spending = $2,985,000
Explanation:
There are two financial years in consideration
They are 2008 and 2009
Closing values of 2008 = Opening values of 2009
Now, closing value of net assets at 2008 = $4 million
Closing value of net assets for 2009 = $6.2 million
Net capital spending = Gross fixed assets at year end - Opening fixed assets
Gross fixed assets = Net Value + Depreciation
= $6.2 million + $785,000
= $6,985,000
Thus, Net capital spending in 2009 = $6,985,000 - $4,000,000
= $2,985,000
Answer:
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Explanation:
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Answer:
Demand for chocolate bars increases.
Explanation:
There are two goods: jelly beans and chocolate bars. They are substitute goods. We know that there is a positive relationship between the price of one good and the demand for other good. The substitute goods are generally have a positive cross price elasticity of demand.
This means that as the price of jelly beans increases then as a result the demand for chocolate bars increases even if the price chocolate remains the same.