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3 years ago

Explain what is happening during each phase of the cycle with: I. output, II. employment III. and inflation

Business

1 answer:

Ludmilka [50]3 years ago

5 0

Answer:

During each phase of the economic cycle of Recession and Expansion, the following economic variables fluctuate, accordingly:

I. Output: During Recession, production output reduces. But, during expansion, product output rises with rising income, employment, and even stable inflation.

II. Employment: During phases of economic Expansion, employment rises, while it contracts during the phases of Recession.

III. Inflation: Due to rising income and output during economic expansionary periods, inflation rate also rises. It reduces when the economy enters a recession.

Explanation:

Business or Economic Cycle describes the recurrent, but not periodic, sequence of changes in the aggregate economic activities of a nation. It usually cascades between the spectrum of expansion and recession. This means that there is an alternation of the phases of economic cycle between expansion and contraction (recession) when the aggregate economic activities may rise or decline due to the equal movement of economic variables like the GDP output, employment, income, and sales.

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Parne Two large American beer producers have decided to merge and seek government approval. They claim that by joining forces th

leonid [27]

Answer:

The correct answer is letter "A": Beer prices will go down.

Explanation:

Usually, when two large companies merge they take most or almost all part of their market causing a monopoly. This implies the recently-merged company to set the price of the goods according to what they believe is suitable which does not necessarily match with the consumers' expectations. However, for the companies in the case to prove the government that the merger will benefit the economy, they must show that the price of the beer will go down which is the opposite of what is expected under other regular situations.

5 0

3 years ago

In December, Davis Company had the following cost flows: Molding Department Grinding Department Finishing Department Direct mate

slava [35]

Answer:

Required 1 ; Journals

Work In Process : Grinding Department $ 128,000 (debit)

Work In Process : Molding Department $ 128,000 (credit)

Being transfer of costs from Molding to Grinding Department

Work In Process : Molding Department $ 128,000 (debit)

Work In Process : Grinding Department $ 128,000 (credit)

Being transfer of costs from Grinding to Molding Department

Finished Goods Account $40,000 (debit)

Work In Process : Finishing Department $40,000 (credit)

Being transfer of costs from Finishing department to finished goods account

Required 2 : Difference

Job Order Costing

Each production is unique and there may be no transfers to and from other departments. The is no inventory from previous processes as this is unique to the job order.

Process Costing (Currently in use)

There are transfers from and to other departments. Production is in sequence. For each departments we may also have inventories

Explanation:

Finishing Department Costs Calculation

Direct materials $17,200

Direct labor $11,600

Applied overhead $11,200

Total $40,000

Difference :

You should be able to see that the Journal entries above depicts a process costing system. Now provide reasons why this system differs from the job-order cost system. See the reasons above.

8 0

3 years ago

On January 1, 2022, The Eighties Shop has 100,000 shares of common stock outstanding. The Eighties Shop incurred the following t

Anastasy [175]

Answer:

Date General Journal Debit Credit

March 1 Bank A/c $2,650,000

(53,000 × $50)

Share Capital A/c $53,000

(53,000 × $1)

Share Premium A/c $2,597,000

[53,000 × $49 ($50 - $1)}

(Being additional 53,000 issued shares for $50)

May 10 Treasury Stock A/c $254,400

(4,800 × $53)

Cash A/c (4,800 × $53) $254,400

(Being purchase of 4,800 treasury stock for $53 )

June 1 Retained Earning A/c $207,480

(1,53,000- 4,800) × $1.4

Dividend Payable A/c $207,480

[(153,000 - 4,800) × $1.4]

(Being cash dividend declared)

July 1 Dividend Payable A/c $207,480

Cash A/c $207,480

(Being cash dividend paid)

October 21 Cash A/c (2,400 × $58) $139,200

Treasury Stock (2,400 × $53) $127,200

Paid in Capital from treasury Stock $12,000

(2400 × $5)

(Being 2,400 Treasury Stock sold for $58)

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2 years ago

The following revenue and expense account balances were taken from the ledger of Acorn Health Services Co. after the accounts ha

trasher [3.6K]

Answer and Explanation:

The preparation of the income statement is presented below:

Service revenue $634,900

Less:

Depreciation Expense $10,000

Insurance Expense 9,000

Miscellaneous Expense 8,150

Rent Expense 60,000

Supplies Expense 4,100

Utilities Expense 44,700

Wages Expense 548,200

Net loss -$49,250

6 0

3 years ago

Five workers from the machining department are brainstorming ideas to reduce waste. their ideas will be presented to their super

sattari [20]

The five workers comprised a self managed or self organized team in which this describes a small group or a group of people which are employees that discusses a plan in which is about activities or duties that they ought to do. Which is being done without any guidance of any higher authority. It is being described above for the group of employee has decided to discuss about their issue without the help of their supervisor.

4 0

3 years ago