Answer: Raises the CPI and reduces real income.
Explanation:
Inflation is a sustained rise in the general price level of the goods and services in an economy during a particular period. It is usually expressed as a percentage. Inflation leads to a reduction in the purchasing power of a country's currency.
Real income reduces because a rise in the price level with nominal income constant reduces the purchasing power of money. People holding real assets are better off than people who are holding cash.
Answer:
C. $56,700
Explanation:
From the accounting equation which shows the relationship between the elements of a balance sheet namely;asset, liabilities and equity.
Asset = liabilities + equity
Total assets = $15,000 + $12,300 + $3,100 + $35,000 = $65,400
Total liabilities = $8,700
Stockholders’ equity = $65,400 - $8,700
= $56,700
The stake of the owners of the company is $56,700
The correct option is Option A - using credit to pay for purchases.
Answer: The total manufacturing cost variance is made up of direct material cost variance, direct labor cost variance and factory overhead cost variance. (Option C).
Explanation:
Some of the goals of manufacturing companies are to increase company’s revenue and profit. To achieve this, a company needs to know how to manage its costs and these may cause variances in manufacturing.
The total manufacturing cost variance is made up of direct material cost variance, direct labor cost variance and factory overhead cost variance. These costs are the differences between the actual cost incurred and the set cost. These variances help managers to know if the company is meeting up to the required standard.