Answer:
The answer is B. contributes to U.S. GDP, but not U.S. GNP
Explanation:
Gross Domestic Product (GDP) is the market value of all final goods and services produced within the economy of a country within a period of time.
Gross National Product(GNP) is the market value of all final goods and services produced by a citizen of a country irrespective of whether they are in the country or outside the country within a period of time.
The BMW plant in Spartanburg which produces $10million worth of vehicles is in USA but the company in owned by Germans. Since it is produced within the economy of USA, it will count for USA's GDP but it won't count for USA's GNP because it is not owned by USA citizen rather, it will count for Germany's GNP because it is owned by Germans.
Answer:
(i) 900 CDs
(ii) Greater than; $1,650
Explanation:
(1) Break-event point will be when the contribution margin from total sales is equal to fixed costs,
Contribution Margin = Selling price - variable cost
= $(21.5 - 9.5)
= $12
Contribution Margin *Number of CDs sold = $10,800
Break-even point for Studio A = 10,800 ÷ 12
= 900 CDs
(2) Studio A would be more profitable when the extra profit earned from per unit sale of CD exceeds the extra fixed cost given in Studio A.
Extra Contribution margin in Studio A = $(12-10)
= $2
Extra Fixed cost in Studio A = $(10,800 - 7,500)
= $3,300
Studio A should be chosen if sales is greater than (3300/2) = $1,650.
Answer:
The use of budgets in controlling operations
Explanation:
Budgetary control
The efficiency with which the manger utilizes the budget to control and monitor the costs and operations in a given period of time .
uses the budget as the controlling operations .
Steps of Budgetary Control:
a. Establish a plan or a target of the performance , which coordinates all the activities of the business .
b. Record the actual performance .
c. Compare the actual performance with the planned .
d. Calculate the differences , variances and the reasons .
e. Act immediately , if necessary, to remedy the situation.
Answer:
Critique of advertising.
Explanation:
Advertising is a marketing strategy used by organizations or individuals to convince or persuade a consumer to buy their products.
It is used to promote goods and services using a multimedia channel such as television, radio, billboards etc.
Critique of advertising postulates that adverts usually urge or prompt consumers to buy products even when they don't need it.
Answer: The correct answer is "A) Without trading, the portfolio weights will decrease for the stocks in the portfolio whose returns are above the overall portfolio return.".
Explanation: The statement "A) Without trading, the portfolio weights will decrease for the stocks in the portfolio whose returns are above the overall portfolio return." is FALSE, because it is the opposite, that is Without trading, the portfolio weights will <u>increase</u> for the stocks in the portfolio whose returns are above the overall portfolio return.
