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eimsori [14]
2 years ago
6

Substitution bias is a problem when measuring the consumer price index because A) consumers are eager to buy new products as the

y are introduced, despite their lack of full information about the quality of those products until they buy and use them. B) consumers are slow to adjust their buying patterns from year to year in response to price changes. C) the introduction of new goods gives consumers access to a greater variety of products. D) prices of goods and services do not change in the same proportion from year to year.
Business
1 answer:
swat322 years ago
4 0

Answer: D

Explanation: The prices of goods and services do not change in the same proportion from year to year.

Substation bias is a situation whereby the increase in price of a particular product makes the consumer opt for another alternative which is not necessarily in the same class of product.

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Shaw Company sells goods that cost $300,000 to Ricard Company for $410,000 on January 2, 2017. The sales price includes an insta
Shkiper50 [21]

Answer:

The revenue from sales to be recognized by Shaw is $390,000

Explanation:

A) Journal entry to record the sale on January 2, 2017

Date                               Particulars                      Debit        Credit

January 2, 2014      Accounts Receivable         $410,000

                                Sales Revenue                                      $370,000

                                 Unearned Service Rev                         $40,000

Being the recording of sales and unearned service revenue

                                Cost of Goods Sold            $300,000

                                 Inventory of Merchandise                       $300,000

B) Shaw should recognise the following Revenue from Sales to Ricard

Sales Revenue                                                        $370,000

Service Revenue (3/6 x $40,000)                            <u>$20,000</u>

Due to the fact that accounts end March 31st,       $390,000

2017, only 3 months will be accounted for under

service revenue for the year

Therefor the revenue from sales to be recognized by Shaw is $390,000

5 0
3 years ago
The Kelsh Company has two divisions--North and South. The divisions have the following revenues and expenses:
weqwewe [10]

Answer:

Company should not eliminate the North division.

Explanation:

Division B is individually making loss. Overall the company is making profit of $50,000.

After eliminating the North division the overall profit  will be converted into the loss of $140,000, because the common corporate expenses were shared by the both divisions, eliminating one cause the whole expense to be allocated to a single division.

Company should not eliminate the division as it will increase the total loss.

Working for on which decision is based is attached with this answer please find it.

4 0
3 years ago
When Eleanor went to Letty's department store, she noticed that the price that rang up when she was billing was much higher than
Sunny_sXe [5.5K]

Answer: stability

             

Explanation: In simple words ,The probability that the origin of the attribution would change over a duration of time is called attribution. For instance, if a person decides to get such a big promotion, they might equate it to a lack of skill.

This suggests uncertainty, as the person must improve their skills and obtain an education in order to ultimately influence the outcome. It is not a sustainable situation, but one that can be modified by behavioral change.

Thus, from the above we can conclude that the correct option is D.

5 0
3 years ago
Perez Company acquires an ore mine at a cost of $2,940,000. It incurs additional costs of $823,200 to access the mine, which is
cluponka [151]

Answer:

$1,500,000

Explanation:

Step 1 : Determine depletion rate

Depletion rate = $3.57

Step 2 : Depletion expense

7 0
3 years ago
Parne Two large American beer producers have decided to merge and seek government approval. They claim that by joining forces th
leonid [27]

Answer:

The correct answer is letter "A": Beer prices will go down.

Explanation:

Usually, when two large companies merge they take most or almost all part of their market causing a monopoly. This implies the recently-merged company to set the price of the goods according to what they believe is suitable which does not necessarily match with the consumers' expectations. However, for the companies in the case to prove the government that the merger will benefit the economy, they must show that the price of the beer will go down which is the opposite of what is expected under other regular situations.

5 0
3 years ago
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