Answer:
The Differences between Absorption Costing and Variable Costing
1. variable overhead costs
2. variable and fixed cost distinctions
3. greater than absorption costing net operating income
Explanation:
Absorption costing does not separate costs according to their variable and fixed elements but includes all product or directs costs in the cost of goods. Variable costing, on the other hand, makes the distinctions and only accounts for variable costs in the product costs and not all the direct costs.
Answer:
1.$34.4
2.$38.70
3.$61.95
Explanation:
1. Current price=D1/ (Required return-Growth rate)
= (2.15*1.04)/ (0.105-0.04) =$34.4
Therefore the answer is $34.4
We use the following formula:
A=P (1+r/100) ^n
where
A=future value
P=present value
r=rate of interest
n=time period.
2. A=$34.4*(1.04) ^3
=$38.70(Approximately).
Therefore the answer is 38.70
3. A=$34.4*(1.04) ^15
=$61.95(Approximately).
Therefore the answer is $61.95
Answer:
4. cannot currently produce.
Explanation:
The Production Possibilities Frontier is a graph that shows a combination of goods that can be produced using the resources and technology available and the points outside this curve are not possible to produce with the current levels of resources and technology. According to this, the answer is that any point outside a country's production possibilities frontier represents a combination of two goods that an economy cannot currently produce because that will require more resources and technology.
<span>The true cost of borrowing and lending is best measured by the real interest rate. Real interest rate adjusts the nominal interest rate by inflation. (Real interest=Nominal interest-Inflation)
Let us consider two instances:
Instance 1 : Nominal interest rate is 5% and CPI inflation at 2.8%.
Instance 2 : Nominal interest rate stays at 5% and CPI inflation at 3.5%.
During Instance 2, for an unassuming lender, though it looks like he is not impacted, inflation has taken away some of his purchase power while the interest he earns is the same. Likewise a low inflation rate will have a hidden impact for the borrower and beneficial for the lender.
Instead, if we take real interest into account, first instance had a real interest rate of 2.2% and the second instance had a real interest rate of 1.5% which explicitly shows the impact of the higher inflation rate and thus reflects the true cost of borrowing/lending.</span>
Flyer would have to cut $2 per unit in order to meet the new target cost.
<h3>What is target cost?</h3>
The target cost of a product is the expected selling price of the product minus the desired profit from selling
First, we need to get the target cost
= Target Selling price per unit - Target profit per unit
= $48 - ($48 x 0.125)
= $48 - $6
= $42
Then, Flyer have to cut costs per unit
= Cost for product - Target cost
= $44 - $42
= $2
Hence, Flyer would have to cut $2 per unit in order to meet the new target cost.
Learn more about target costs here: brainly.com/question/15237816
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