Answer:
(i) Base year prices
(ii) between two consecutive years
Explanation:
formula for GDP deflator is (real GDP)/(nominal GDP) x 100 which is the numerator real GDP where prices are valued at the current year adjusted to inflation or deflation and then the denominator where prices are valued at a base year where prices are valued at a nominal year which are not adjusted to any inflation or deflation.
The CPI ( consumer price index) is calculated by determining the rise or fall in price of a good or goods in two consecutive periods which in turn gives us the increase or decrease in price percentage.
Answer:
$20.
Explanation:
As the question require us to calculate the profit when one unit in excess of break-even point is sold, so we have to calculate the break-even quantity first. The formula to calculate the break-even quantity is:
Break-even Units = Fixed Cost / (Contribution Margin Per Unit)
where
Contribution margin per unit = Selling price per unit - variable cost per unit
⇒ Break-even units = 15 / (50 - 30) = .75.
This makes the one unit in excess of break-even volume to be 1.75. Now, we have to draft the income statement to determine the operating profit when sales volume is 1.75.
Income Statement
Revenue (50 * 1.75) $87.5
Variable Cost (30 * 1.75) (52.5)
Fixed Cost (15)
Operating Profit $20
Answer:
Find in the excel file attached detailed adjusting entries required for all transactions in the question.
Explanation:
Please note the analysis of each transaction done under the heading "particulars".
Answer: The focus of management accounting is on "C) internal reporting.".
Explanation: It could be understood as the concept of management accounting as that economic information destined to the internal users of the company and which is mainly responsible for the analysis of the costs of the company, helping to make management decisions and business control.
