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3 years ago

What does deficit spending require a government to do?

1 answer:

8 0

Deficit spending is where a government's spending exceeds its revenue (the money it has). This means that they need to borrow money to cover their costs. The opposite of a government's budget being in deficit is it being in surplus.

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Bellstar communications is a new provider of 3d satellite tv service. it offers an extremely low introductory price for the firs

ArbitrLikvidat [17]

Bellstar Communications is using a strategy known as Penetration Pricing - as stated this consists of setting prices really low to begin with in order to attract customers and establish market share. Once the provider is more established it's likely they will increase prices.

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3 years ago

When sales exceed production, the net operating income reported under variable costing generally will be:_____.

padilas [110]

When sales exceed production, the net operating income reported under variable costing generally will be greater than the net operating income reported under absorption costing.

Under variable costing, constant manufacturing overhead fee is handled as product cost. If the range of devices produced exceeds the range of gadgets sold, then net operating income under absorption costing will: be extra than net operating earnings underneath variable costing.

Variable costing is a concept used in managerial and cost accounting wherein the fixed production overhead is excluded from the product price of manufacturing. The technique contrasts with absorption costing, in which the fixed manufacturing overhead is allotted to products produced.

Absorption costing, once in a while known as “full costing,” is a managerial accounting technique for taking pictures of all prices associated with manufacturing a selected product. The direct and oblique costs, together with direct substances, direct exertions, leases, and insurance, are accounted for with the aid of the use of this method.

Learn more about Absorption costing here brainly.com/question/26276034

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6 0

2 years ago

All of the following statements about an operation-costing system are true except: a. direct-material cost is traced to each bat

Ksivusya [100]

Answer:

The correct answer is letter "D": direct material and conversion costs are traced to each batch of product produced.

Explanation:

The operation-costing system is based on the principle that in large entities where manufacturing is almost the same for all products, costs can be assigned to units produced and the result of adding all those costs should equal the costs assigned in groups of units produced or batches.

Conversion costs are a combination of direct labor and manufacturing overhead costs. Conversion costs are traced by adding the direct costs to the conversion costs of an operation day by the number of units produced in the day.

3 0

4 years ago

Me Online, Inc. is considering a project that has an initial after-tax outlay or after-tax cost of $220,000. The respective futu

raketka [301]

Answer:

a. Me Online rejects the project because the NPV is about -$22,375.73

Explanation:

The computation of the Net present value is shown below

= Present value of all yearly cash inflows after applying discount factor - initial investment

The discount factor should be computed by

= 1 ÷ (1 + rate) ^ years

where,

rate is 11%

Year = 0,1,2,3,4

Discount Factor:

For Year 1 = 1 ÷ 1.11^1 = 0.9009

For Year 2 = 1 ÷ 1.11^2 = 0.8116

For Year 3 = 1 ÷ 1.11^3 = 0.7312

For Year 4 = 1 ÷ 1.11^4 = 0.6587

So, the calculation of a Present value of all yearly cash inflows are shown below

= Year 1 cash inflow × Present Factor of Year 1 + Year 2 cash inflow × Present Factor of Year 2 + Year 3 cash inflow × Present Factor of Year 3 + Year 4 cash inflow × Present Factor of Year 4

= $50,000 × 0.9009 + $60,000 × 0.8116 + $70,000 × 0.7312 + $80,000 × 0.6587

= $45,045.05 + $48,697.35 + $51,183.40 + $52,698.48

= $197,624.28

So, the Net present value equals to

= $197,624.28 - $220,000

= -$22,375.80

We take the first four digits of the discount factor.

3 0

4 years ago

What did investors do that helped trigger the stock market crash in 1929? (p. 674)Question 17 options:Invested in banks that wer

kozerog [31]

Answer:

Bought stocks on credit, thinking the value could only increase.

Explanation:

Currently the securities and exchange commission (SEC) defines buying stocks on credit as buying through a margin account. This was a very common before the 1929 stock crash since investors speculated that the price of stocks would keep increasing. The notion that the stock prices could fall was not something considered possible back then. So when the market stooped growing, and the price of stocks started to lower, investors couldn't pay their loans and even if the securities were held as collateral, their value collapsed. Some people made huge fortunes doing this, but others lost everything.

7 0

4 years ago