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2 years ago

In early 2018 businesses bought more inventory, increasing GDP. What would happen

Business

1 answer:

puteri [66]2 years ago

4 0

Answer:

If a company increases its final goods inventory level, that will increase the country's GDP even if the goods are not sold during the current period (they will be sold in future periods). Increases in inventory level are considered part of Investment component of the GDP.

If the inventories are not sold during the year (2018) and if they continue to be unsold during part of 2019, that will negatively affect the GDP because fewer goods will be purchased to replenish these inventories and the market price of the goods will also decrease. The market price of goods is determined by the supply and demand. If the supply is much higher than the demand and inventories start to pile up, their price will decrease in order to increase the quantity demanded. If the volume of the goods in inventory is significant enough, this should lower the inflation rate.

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A necessary condition to use the equity method of reporting for an equity investment is that the investor company must

Vilka [71]

The answer would be a. Have the ability to exercise significant influence over the operating and financial policies of the investee

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3 years ago

If the variable overhead efficiency variance is $500 unfavorable and the variable overhead spending variance is $100 favorable,

Vera_Pavlovna [14]

Answer:

a. Debit to variable overhead efficiency variance

d. Credit to variable overhead spending varian

Explanation:

Based on the information given in a situation where a variable overhead efficiency variance is UNFAVORABLE it will be DEBITED and variable overhead spending variance that is FAVOURABLE will be CREDITED.

Therefore the journal entry will include a:

a. Debit to variable overhead efficiency variance

d. Credit to variable overhead spending Variance

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3 years ago

Assume there is a fixed exchange rate between the Euro and U.S. dollar. The expected return and standard deviation of return on

drek231 [11]

Answer:

13.50%

Explanation:

From the given information ; we use EXCEL to compute the Dataset given and use it to determine the expected return on what the stock portfolio would be.

Check the attached file below for the solution in Excel Sheet.

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3 years ago

General mills actively researches people who don't buy their products to find out why they are not adopters. this practice is m

Margaret [11]

Answer:

The answer is idea generation.

Explanation:

Idea generation refers to the process of creating and developing ideas. During this process, General Mills would come up with ideas and test whether this product would interest people to buy it. At this step as well General Mills can explore why previous products did not succeed and strive to counter these obstacles in the future product.

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3 years ago

A production function: shows the output that is most highly valued by consumers. shows the most desired production method for a

BigorU [14]

Answer:

Shows the output that is produced using different combinations of inputs combined with existing technology

Explanation:

The production function is an <u>expression that links the different amount of inptuts used in the production process and the final output obtained with each combination of inputs, with a given tehcnology.</u>

As an example, if a economy produces only popcorn, a production function would be an expression that shows hou much popcorn that economy can produce with different combinations of corn and sugar, with a given technology.

4 0

3 years ago