Answer:
Cost of good manufactured= $50000
Explanation:
Total manufacturing cost is the aggregate amount of cost incurred by a business to produce goods in a reporting period.
Generally accepted accounting principles require that the cost of goods sold shall consist of:
the cost of direct materials
the cost of direct labor
the cost of manufacturing overhead
<u>Expenses that are outside of the manufacturing facilities, such as selling, general and administrative expenses, are not product costs. </u>They are reported as expenses on the income statement in the accounting period in which they occur.
In this exercise:
<u>Cost of goods manufactured:</u>
Direct materials= $15000
Direct Labor=$30000
Factory overhead=$5000
Total= $50000
Answer:
firms anticipate rival firms' decisions when they make their own decisions.
Explanation:
Game theory assumes that firms anticipate rival firms' decisions when they make their own decisions. It is very important and necessary for understanding firms operating in an oligopolistic market.
An oligopoly can be defined as a market structure comprising of a small number of firms (sellers) offering identical or similar products, wherein none can limit the significant influence of others.
Hence, it is a market structure that is distinguished by several characteristics, one of which is either similar or identical products and dominance by few firms.
This ultimately implies that, under the game theory, when firms makes a decision about their business, it is expected that they consider how the other firms would react to such decisions.
Economists call GDP that uses constant, unchanging prices as
<u>Real GDP</u>
Explanation:
- Real gross domestic product (real GDP for short) is a macroeconomic measure of the value of economic output adjusted for price changes . This adjustment transforms the money-value measure, nominal GDP, into an index for quantity of total output.
- It is calculated using the prices of a selected base year. To calculate Real GDP, you must determine how much GDP has been changed by inflation since the base year, and divide out the inflation each year.
- Real GDP accounts for the fact that if prices change but output doesn't, nominal GDP would change.
- The real economic growth, or real GDP growth rate, measures economic growth as it relates to the gross domestic product (GDP) from one period to another, adjusted for inflation, and expressed in real terms as opposed to nominal terms
The correct statement among the given is 'cost of equity is always equal to or greater than the cost of debt'
.
Option-c
<u>Explanation:
</u>
Debt on assets which are less likely to lose is secured more uncertainty leads to lower returns, hence lower costs. The risk of loss to equity holders also remains greater and not even assured against any collateral. In comparison to higher risk equity holders foresee higher returns.
This is why debt costs are higher. Such high risk will lead to higher equity costs than debt costs. To investors, equity costs would be returned on equity investment, and debt costs would be made as part of debt investment.
