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3 years ago

When budgets are used for control,

Business

1 answer:

ladessa [460]3 years ago

5 0

Answer:

(C) actual amounts from different years are compared.

Explanation:

Budgets are used for control. To compare the performace is necessary to have a same period, with almost the same characteristics and evaluate the actual performance. In sales for example, the bussineses has different seasons around the year, and because some sociodemographic reasons.

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ritical analysis Q10 Suppose that unexpectedly rapid growth in real income abroad leads to a sharp increase in the demand for Am

mash [69]

Answer:

Output and employment will increase exerting modest upward pressure on the price level.

Explanation

In simple words, the increased demands for the good would work as an incentive for the producer to produce more and they can also lower their cost of production by producing in mass which will further lead to economies of scale.

More production means more requirement of workers which will eventually lead to more employment opportunities in the country. However, this increase would lead to modest increase in prices due to more purchaser power in the country.

4 0

3 years ago

Net exports of goods and services is defined as equal to?

Jet001 [13]

A. because The United States and other countries import and export goods for the need of there country.

8 0

3 years ago

In each of the following cases, determine how much GDP and each of its components is affected, if at all:

Elanso [62]

Answer:

Follows are the solution to this question:

Explanation:

In option A, Its increase in consumption and GDP is $200.

In option B, Investment decisions increase about $1800, net exports drop by $1800 and therefore GDP should remain constant.

In option C, GDP or investment wasn’t increasing only at present because estimates were produced last year.

In option D, Market growth is $470 million, options trading is rising by $30 million but GDP is growing by $500 million.

GDP is just a misleading indicator, it does not take into account recreation, environmental protection, education and health rates, non-market behaviors, changes in wealth disparity, increases of variety or rises in innovation. HDI's social progress Index could be used to highlight a need for people or their ability to assess national growth as the supreme requirement.

5 0

3 years ago

on august 1, paid $72,000 cash to purchase houtte's 9%, six-month debt securities ($72,000 principal), dated august 1.

Kitty [74]

Here short term investment is debited as it increased the asset and credited the cash as decreased the asset.

here cash is debited as it increased the asset and credited the interest revenue as it also increased the revenue.

What Are Short-Term Investments?

Marketable securities, commonly referred to as temporary investments or short-term investments, are financial investments that can be quickly converted to cash, usually within five years.
After only three to twelve months, many short-term investments are sold or turned into cash. CDs, money market accounts, high-yield savings accounts, government bonds, and Treasury bills are a few typical examples of short-term investments.
Short-term investments, also known as marketable securities or temporary investments, are financial investments that can be easily converted to cash, typically within 5 years.
Typically, these investments are high-quality and highly liquid assets or investment vehicles.
Short-term investments may also specifically refer to financial assets of a similar kind, but with a few additional requirements, that are owned by a company.

To know more about Short-term investment visit:

6 0

2 years ago

The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. If Burkett Corporation achi

nata0808 [166]

Answer:

Margin Of Safety= $275,862

Explanation:

We can calculate the margin of safety easily by the formula given below

Formula: Margin of safety = Budgeted sales - Breakeven sales

As breakeven sales are not given in the data Firstly we need to find out break even sales in order to calculate margin of safety

Breakeven sales= $\frac{Total fixed cost}{Contribution margin ratio}$

As you can see in the data fixed cost s given but contribution margin ratio is not

Contribution margin(Sales revenue - All variable cost)= $1,000,000 - ($270,000 + $240,000 + $150,000 + $50,000) = $1,000,000 - $710,000 = $290,000

Sales price per unit = Total sales/Number of units sold

Sales price per unit= $1,000,000/50,000 = $20

Budgeted contribution margin= $290,000/50,000 = $5.80

Contribution margin ratio = Budgeted contribution margin per unit/Sales price per unit

Contribution margin ratio = $5.80/$20 = 29%

Lets put values in breakeven formula to find breakeven sales

Breakeven sales= $\frac{Total fixed cost}{Contribution margin ratio}$

Breakeven sales= $\frac{210000}{0.29}$

Breakeven sales= $724,138

Now we have both budgeted sales and breakeven sales, we can easily calculate e of safety

Margin of safety = $1,000,000- $724,138

Margin of safety = $275,862

7 0

3 years ago