Answer:
There are at least 2 opportunity costs associated with of letting your colleague have another month:
- if you invested in the oil-well venture, you could have earned $5,100 x 36% = $1,836 in one year
- if you invested in the new IT stock, you could have earned $5,100 x 48% = $2,448 in one year
You could invest in one of these options, or divide your money and invest in both options, e.g. invest $2,000 in the oil company and $3,000 in the IT company. Each different investment proportion results in a different opportunity cost.
Explanation:
Opportunity costs are the benefits lost or extra costs associated to carrying out an investment or activity instead of another alternative. Sometimes you might have several opportunity costs for one investment, e.g. invest in the IT company which is risky, invest in corporate bonds which is less risky or invest in US securities which is a safe investment.
Answer: B. Their national debt will increase.
Explanation:
A country has a budget deficit when it spends more than it receives from its revenue sources i.e taxes.
If a country has a budget deficit, it will have to borrow money in order to pay for this shortfall so that it may be able to carry out the expenditure it is supposed to.
If therefore, a country keeps operating in deficit, it will have to keep borrowing to keep spending which means that the national debt will keep increasing.
Answer:
B. To convince your manager to use a new meeting organization tool
Explanation:
A proposal talks about the benefits of making a change, so it would be the right tool to convince your manager to use a new meeting organization tool.
Unlike a report which deals with something that happened in the past (answers A, C and D), a proposal talks about the future. It's a way to convince people to adopt new ideas or change the way things are done.
Answer:
Estimated manufacturing overhead rate= $1.3 per direct labor dollar.
Explanation:
Giving the following information:
Estimated overhead cost= $747,500
Estimated direct labor cost= $575,000
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 747,500/575,000= $1.3 per direct labor dollar.
Answer and Explanation:
The journal entries are shown below:
Salary & Wages expense $224,000
To social security Payable $13,440
To Medicare tax Payable $3,360
To Federal Tax Witholding Payable $43,140
To Retirement contribution payable $2,660
To Salary & Wages Payable $161,400 (Balancing figure)
(Being the period payroll is recorded)
For recording this we debited the salary & wages expense as it increased the expenses and credited all other accounts as it increased the liabilities