The economics concepts of income effect and substitution effect express changes in the market and how these changes impact consumption patterns for consumer goods and services. The income effect expresses the impact of increased purchasing power on consumption, while the substitution effect describes how consumption is impacted by changing relative prices. Different goods and services experience these changes in different ways. Some products, called inferior goods, generally decrease in consumption whenever incomes increase. Consumer spending and consumption of normal goods typically increases with higher purchasing power, in contrast with inferior goods.
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Answer:
All the answers are correct.
Explanation:
The cost of the processor chips is a <em>direct cost</em> because it is the vital thing of any laptops. Without a processor, the laptop is nothing but a heartless product.
The cost is <em>variable</em> because the price of a processor varies as there are various processors in the computer market.
The cost is a <em>product cost</em> because it is directly related to manufacturing a laptop.
Option[A] is the correct answer.
Corporation and limited liability (limited partnership) company taxed twice.
Before any earnings may be distributed to shareholders, the corporation must pay income tax at the corporate rate. Any gains that are then dispersed as dividends to shareholders are again taxed at the recipient's individual rate. The company profits are thus subject to two separate income tax rates.
<h3>What is Double Taxation?</h3>
When business profits are taxed both at the corporate and personal levels, C corporations are subject to double taxation. Before any earnings may be distributed to shareholders, the corporation must pay income tax at the corporate rate. Any gains that are then dispersed as dividends to shareholders are again taxed at the recipient's individual rate. The company profits are thus subject to two separate income tax rates.
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Answer:
$2,250 Favourable
Explanation:
Calculation to determine the fixed factory overhead volume variance
Fixed factory overhead volume variance=$2.50 × [18,750 hrs. – (5,100 units × 3.5 hrs.)]
Fixed factory overhead volume variance=$2.50×[18,750 hrs. – 17,850 hrs]
Fixed factory overhead volume variance=$2.50×900
Fixed factory overhead volume variance=$2,250 Favourable
Therefore the fixed factory overhead volume variance will be $2,250 Favourable
the answer is the letter C
