The process of measuring and reporting financial data by responsibility center (option c) well describes responsibility accounting.
Explanation:
The cost of production is closely monitored by all the departments running in the company. It can be controlled only in the process of accounting records all the data of budget forecasting and future recommendations. Every month all the officials from different business sections need to provide financial data. Such operations of all the divisions are collectively called as responsibility center.
The control of the budgeting process lies helps the finance department to fix the parameters for avoiding overhead costs. It mainly acts as a planning source to take an abrupt financial decision to reap more profits against cost constraints which may hinder the financial growth of the business.
Answer:
The crowding-out effect is strongest when the economy is at full employment.
Explanation:
The crowding out effect refers to an economic theory which argues that a rising public sector spending drives down or even eliminates private sector spending.
The three main reasons for the occurrence of crowding out effect are:
- economics,
- social welfare, and
- infrastructure.
Crowding out is most effective when an economy is already at potential output or full employment. Then the government's expansionary fiscal policy will encourage price increases, which will lead to an increased demand for money.
Answer:
a. Amount the government would have to increase spending according Economist A = $8 billion
b. Amount the government would have to increase spending according Economist B = $16 billion
Explanation:
a. Economist A
Since government spending multiplier is believed to be 8, this implies that the government has to spend an amount that when it is multiplied by 8 it will be equal to recessionary gap of $64 billion in order to close the output gap. This amount can be calculated as follows:
Amount the government would have to increase spending according Economist A = Amount of recessionary gap / Government spending multiplier according to Economist A = $64 billion / 8 = $8 billion
b. Economist B
Since government spending multiplier is believed to be 4, this implies that the government has to spend an amount that when it is multiplied by 4 it will be equal to recessionary gap of $64 billion in order to close the output gap. This amount can be calculated as follows:
Amount the government would have to increase spending according Economist B = Amount of recessionary gap / Government spending multiplier according to Economist B = $64 billion / 4 = $16 billion
Answer:
Given that,
At the end of the current year,
$17,555 of fees have been earned but have not been billed to clients.
The Journal entry is as follows:
Account receivable A/c Dr. $17,555
To Fees earned A/c $17,555
(To record the accrued fees)
The above is the adjusting entry for the accrued fees that has not been billed to clients.
<span>Mars inc., an automaker, hires a popular celebrity, Emma hunt, as the spokesperson for its "keep the world green" campaign, an initiative for preserving trees. The viewers of the commercial perceive Emma as being sincerely interested in citizen initiatives to preserve trees. Emma as a message source is said to have perceived concern. Those watching the campaign have a concern about preserving the trees and the commercials remind them of whats to come if they stop preserving. This concern happens in many organization groups and saving the trees is an example of those we see concern in some areas will perceive it and feel the harm by watching the commercials. </span>