The index method of cost estimation is used when we want to do the comparison between the cost of something today with the cost in the past.
Given that the index method of cost estimation is given by an=ck(in/ik).
We are required to give the time or situation in which we have to use index method to determine the cost.
A cost index is basically a ratio of the cost of something today to its cost at some time in the past. As such, it is a tool which is used to estimate the cost of things today based on their cost some time ago.
From the definition of cost index we can say that the index method of cost estimation is used when we want to do the comparison between the cost of something today with the cost in the past. This method is basically used in statistical or economics departments of the government of a country.
Hence the index method of cost estimation is used when we want to do the comparison between the cost of something today with the cost in the past.
Learn more about index method at brainly.com/question/28016640
#SPJ4
Answer:
a) The demand curve for unskilled labor is vertical.
Explanation:
Someone says, "Even though the equilibrium wage rate is $8 an hour in the unskilled labor market, if we impose a minimum wage of $10 an hour, no one currently working will lose his or her job." This person must believe that the Group of answer choices demand curve for unskilled labor is vertical.
Response to prices depend on the elasticity of demand because elasticity of demand relates to how quantity demanded will fall as a result of increase in price or in this case wage rate.
A vertical demand curve is a pictorial demonstration of a perfectly inelastic demand which means that no matter how much to you increase the price no change will occur in quantity demanded as such a good is most essential to the consumers.
Therefore if the demand for labor is perfectly inelastic, it means nobody will be laid off with increase in wage rate as firms will not change their quantity demanded for labor.
Answer:
<em>Materials:</em>
P 2,000F
Q 7,650U
Labor:
Rate 800U
Efficiency 2,500.00F
<em>Questions:</em>
Solve for labor and materials variances
Explanation:
std cost $6.00
actual cost $5.75 ($46,000/ 8,000 pounds)
quantity 8,000
difference $0.25
price variance $2,000.00
std quantity 4500.00 (3,000 units x 1.5 pounds per unit)
actual quantity 6000.00 (8,000 purchased - 2,000 ending)
std cost $5.10
difference -1500.00
quantity variance $(7,650.00)
DIRECT labor VARIANCES
std rate $12.00
actual rate $12.50
actual hours 1,600 (160 hours x 10 employees)
difference $(0.50)
rate variance $(800.00)
std hours 1800.00 (3000 units x 0.6hours per unit)
actual hours 1600.00
std rate $12.50
difference 200.00
efficiency variance $2,500.00
Answer:
(a) the marginal cost of producing 1000 pins is given by $2.00 X 1000=
$2000
(b) the firm is making an economic profit.
(c) The firm is not in long-run equilibrium because the cost of production is not equal to the Revenue that will be generated.
Explanation:
Marginal cost this is the cost of producing one additional goods after the initial number.
An economic profit this is the excess profit Revenue generated from a business.
long-run equilibriuma a firm is said to be in long run equilibrium when when marginal revenue equals marginal costs,