<u>Activities</u>
- Pay Vendors
- Evaluate Vendors
- Inspect raw materials
- Plan for purchases of raw materials
<u>Cost Drivers:</u>
a) Number of different kinds of raw materials
b) Number of classes offered
c) Number of tables
d) Number of employees
What is Cost Drivers ?
A cost driver causes a change in an activity's cost. The idea is most frequently applied to allocate overhead expenses to the quantity of produced units. In order to reduce the cost of overhead, it can also be utilized in activity-based costing analysis to identify the causes of overhead. An activity-based costing system may employ a variety of cost drivers. Just one cost driver should be employed if a company just cares about adhering to the minimum accounting standards to allocate overhead to produced items. Cost drivers include things like the amount of customer interactions, engineering change orders, machine hours consumed, and product returns, as well as the number of direct labor hours performed.
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Answer: c. A bilateral contract
Explanation:
In a bilateral contract, the parties involved promise to both perform duties to the other which will make them both an obligor and an obligee.
An obligor is one who owes a duty to another and the obligee is one who a duty is owed to.
Aaron both owes a duty to sell the boat to Matt as well as being owed by Matt the duty to buy his boat. The same goes for Matt thus making this a bilateral contract.
Answer:
False
Explanation:
In this scenario, the natural rate of unemployment would be 5% = 3% of frictional unemployment plus 2% of cyclical unemployment. The other type of unemployment that is part of the natural rate is not referenced in the question (surplus unemployment).
Cyclical unemployment is not added up because it is not part of natural unemployment.
In fact, what natural unemployment basically is, is unemployment that does not depend on business cycle, that is not cyclical. In that sense, cyclical unemployment is totally the opposite to natural unemployment, and you only reach a rate of natural unemployment, when cyclical unemployment is eliminated in a healthy economy.
Answer:
If the effective tax rate increases then the net savings coming from investments will get lowered as a result the investment will have higher payback period (The increase in effective tax rate would lower demand of the product which means there is decline in net saving arising from the sale of the product). Likewise this decrease in annual net savings will also decrease the internal rate of return which shows that their are increased chances of project rejections. The NPV method is based on cash flows and relevant costing just like IRR and payback method but the only difference is that it assumes that the cash earned would be reinvested at cost of capital. The NPV will also decrease due to increased effective tax rate.
Tax multiplier = -1.5
Tax increase = $200 billion
Therefore, since the multiplier is a negative value, the GDP must have gone down.
GDP = Tax increase/Tax multiplier = 200/-1.5 = $133.33 billion decrease.
Then, the correct answer is c.
