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3 years ago

With respect to the consumer price index, the substitution bias arises because:

Business

1 answer:

natita [175]3 years ago

5 0

Answer:

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

Explanation:

Substitution bias describes a possible bias in economic index numbers if they do not incorporate data on consumer expenditures switching from relatively more expensive products to cheaper ones as prices changed.

Substitution bias occurs when prices of items change relatively to one another. It considers how consumer expenditures are reflected in a consumer price index. Consumers will tend to buy more of the good whose price declined, and less of the now relatively more expensive good.

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Freddie's auto service stations were fined for failure to provide the services billed and other things. after being fined, fredd

puteri [66]

It is known as the Total Quality Management or TQM. It is the nonstop procedure of lessening or dispensing with blunders in assembling, streamlining inventory network administration, enhancing the client encounter, and guaranteeing that workers are doing speed with their preparation. Add up to quality administration means to hold all gatherings associated with the generation procedure responsible for the general nature of the last item or administration.

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3 years ago

A minimum acceptable rate of return for an investment decision is called the: Multiple Choice Internal rate of return. Average r

spayn [35]

Answer:

Hurdle rate of return.

Explanation:

A hurdle rate can be regarded as minimum rate of return that is been required by an investor or manager

on a particular project or investment.

The hurdle rate gives the description of the appropriate compensation as regards level of risk present. There are

higher hurdle rates associated with riskier projects.

It should be noted that A minimum acceptable rate of return for an investment decision is called the Hurdle rate of return.

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3 years ago

a company had net revenues of $1,800,000 and total expenses of $800,000, not including income taxes. it paid $300,000 in dividen

Gnesinka [82]

The company's total expenses, excluding income taxes, were $800,000, with net revenues of $1,800,000. It distributed dividends of $300,000. and it has a net income of $1,000,000 before taxes.

Net revenues = $1,800,000

Less: Total expense = $800,000

Net income before tax = $1,000,000

A dividend is a payment made by a company to its shareholders out of its profits. When a business generates a profit or surplus, it can distribute a portion of that profit to shareholders in the form of a dividend. Any unused funds are retained and reinvested back into the company. Both the profit from the current year and the retained earnings from prior years are available for distribution; a corporation is typically not allowed to pay a dividend out of its capital.

The amount that is distributed to shareholders may be paid in cash (typically a deposit into a bank account) or, if the company has a dividend reinvestment plan, it may be paid by the issuance of additional shares or the repurchase of shares.

To learn more about Dividends visit here:

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1 year ago

All manufacturing costs are assigned to units of product and all non-manufacturing costs are treated as period cost under______c

sp2606 [1]

Answer:

absorption

Explanation:

Manufacturing cost can be regarded as the summation of the cost of consumed resources during the production of a product. It can be divided into

direct materials cost

✓ direct labor cost

✓ manufacturing overhead.

It should be noted that All manufacturing costs are assigned to units of product and all non-manufacturing costs are treated as period cost under absorption costing.

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3 years ago

A fraud examiner can request a business’s bank records even if the business is not legally obligated to comply.a) trueb) false

galben [10]

Answer:

false

Explanation:

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3 years ago