Answer:
D. A Fed sale of bonds to brokers and banks.
Explanation:
The sale of bonds to banks and brokers is a contractionary open market policy. Its objective is to check inflation by slowing down the rate of economic growth. When the Fed offer bonds to the markets at a higher interests rate, banks will prefer to buy the bonds than lending out money to household and firms.
Producers rely on banks to fund their operations. If they cannot obtains loans for production and growth, their output decreases. A decrease in output results in reduced exports. Low production of US goods means a reduced supply to the international market. It means international buyers will be competing for fewer US products. As the markets compete for the few available products, they push the demand for the dollar up, causing it to appreciate in value.
It is the Continuous Flow Production Process. It is a stream creation strategy used to fabricate, deliver, or process materials without intrusion. Consistent generation is known as a persistent procedure or a nonstop stream process in light of the fact that the materials, either dry mass or liquids that are being prepared are constantly in movement, experiencing synthetic responses or subject to mechanical or warm treatment. Persistent handling is diverged from group generation.
Answer:
A. Liquidity management is a balancing act, managers try to find liquidity levels that are neither too high not too low.
Explanation:
Maintaining proper liquidity is an important financial objective of management. Proper liquidity management demands that an entity should be able to meet his short term financial obligation and making sure that liquid assets of the entity are not idle. In order to achieve this, the best way to go is to maintain a level that is neither too high and not too low. Not too high means the entity is not holding too much cash or liquid assets than it currently need to meet its short term financial obligation.
For example, not keeping too much cash in current account but investing them in interest-earning investment assets.
Not too low means the cash or liquid assets held by an entity should not less than the amount needed to meet its short term financial obligation. For example, making sure that the entity has enough cash or readily convertible liquid assets that can be used to pay vendors, rent, interest and meet other short term financial obligation.
Option B is false because keeping too much does not help to maximize short term earnings which is a feature of proper liquidity management. Option C is wrong because there is no guideline to support that deferring coupon payment won`t attract payment and this does not connote proper liquidity management.
Option D is obviously false and does not describe proper liquidity management.
Answer:
The correct answer is use of multiple cost drivers to allocate overhead
Explanation:
Use of direct labor hours or direct labor cost to assign overhead to products is typical of traditional costing systems as overhead is believed to have positive relationship with labor-related variables.
Besides,using a business-wide or plant-wide single predetermined overhead rate is not feature of traditional systems of costing.
Since labor-related variables such as direct labor hours or direct labor cost is assumed to be a driver of overhead cost,hence an appropriate overhead absorption basis,it is perfectly understood that there is correlation between direct labor and incurrence of overhead cost in the business.
Answer:
Labour rate variance $2,925 unfavorable
Explanation:
<em>The labour rate variance is the difference between the standard labour cost allowed for the actual hours worked and the actual labor cost for the same hours</em>
$
Standard labour cost ($19.70× 6500) 128,050
Actual labour cost <u>130,975</u>
Labour rate variance <u> 2,925 unfavorable</u>
