Answer:
Variable costs are costs that vary with production. If production rises, the variable cost rises.
Fixed cost are costs that do not vary with production.
The time frame and contracts allows for distinction between fixed and variable cost in the short run.
in the short run, some costs of production cannot be changed for various reasons. Some of the reasons include, supply contract and Labour laws. Due to labour contracts, it might be difficult if not impossible to change wages paid to workers or fire workers. This makes wages fixed in the short run.
Some costs can be varied easily, for example if sales are low, shipping cost would reduce because the amount of orders are smaller.
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Fixed costs include:
advertising expenditures
interest on company-issued bonds
payments for raw materials
Real estate tax
Executive salary
insurance premiums
wage payments
depreciation and obsolescence charges
rental payments on leased office machinery
Variable costs include :
fuel
shipping charges
sales taxes
All costs are variable in the long run because in the long run production decisions which appeared fixed can be changed. For example, Labour contract can end and the firm can decide to adjust or retain the contract in line with the current economic situation. The firm can decide to move to a cheaper location and reduce rental cost.
Explanation:
<u>Explanation</u>:
Subsidies are meant to reduce the money paid by buyers for units of commodity from the producers, while also reducing the selling price imposed by the producers on their sellers.
For example, the initial cost per unit of a popular commodity is $19 and the government then offers a $9 per-unit subsidy for buyers.
Consumer surplus= $9
Producer surplus= 10+9=$19
The answer: an agency relationship
Answer: A. The fastest-growing share of the workforce is at least 55 years old.
Explanation:
The options to the question are:
A. The fastest-growing share of the workforce is at least 55 years old.
B. The fastest-growing age group is workers 16-25, who are prone to having accidents.
C. The largest proportion of the labor force is expected to be in the 16- to 25-year age group.
D. The total cost of labor in the United States will decrease considerably in the near future.
E. The labor force is expected to grow at a greater rate by 2026 than at any other time in U.S. history.
From the question, we are informed that Hadley, a business researcher, believes that organizations will have to spend a lot of money on employee health care in the future while Owen argues that organizations will not have to increase their spending on employee health care benefits.
The statement that weakens Owen's argument is that the fastest-growing share of the workforce is at least 55 years old. This simply means there are more old people incthe the workforce and that means there'll be more tendency for them to go to hospitals when ill compared to youths who'll be stronger.
Answer:
The answer is given below;
Explanation:
Temporary Difference $208,000-$154,000=$54,000
Taxable Temporary Difference=$54,000*25%=$13,500
Current Tax Expense =154,000*25%=$38,500
Please note that taxable temporary difference result in deferred tax expense and corresponding effect in deferred tax liability.
Deferred Tax Expense Dr.$13,500
Current Tax Expense Dr.$38,500
Deferred Tax liability Cr.$13,500
Current Tax Liability Cr.$38,500
