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bonufazy [111]
3 years ago
14

Crowding out occurs when deficit spending increases interest rates. decreases interest rates. increases consumer spending. decre

ases consumer spending. increases investment spending.
Business
1 answer:
Helen [10]3 years ago
4 0

Answer: increases interest rates

Explanation:

Crowding out occurs when an increase in the involvement of the government in a particular sector of the market economy affects the other sectors of the market.

An example is when an expensionary policy such as government spending leads to the rise in interest rates and which will also reduce the investment spending as investors won't like.to invest in such economy with high interest rates.

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Match each retail term with the correct definition
katen-ka-za [31]

Answer:

what retall terms

Explanation:

8 0
3 years ago
The acquisition cost of a certain raw material changes frequently. The book value of the inventory of this material at year end
kkurt [141]

Answer: B. FIFO method

Explanation: The inventory prices of goods as calculated by a firm will remain the same at year end if a firm's inventory price is automatically updated on account of any additional inventory purchase and also if done on a periodic basis. This will occur only when the inventory pricing system is based on First-in-First-out method, whereby the prices of first inventory purchase is first associated or applied on goods sold until the unit in the inventory is exhausted. This allows prices of goods to move based on period of purchase where older prices gets precedence over the newer inventory purchase.

5 0
3 years ago
Profitability Analysis Kolby Enterprises reports the following information on its income statement: L04 Net sales ......... . ..
notsponge [240]

Answer:

Gross profit percentage = Gross profit / Net sales

= (Net sales - COGS) / Net sales

= (250,000 - 150,000) / 250,000

= 40%

Return on sales ratio = EBIT / Net sales

= (Gross profit + other income - Administrative expenses - Other expense - Selling expenses) / Net sales

= (250,000 - 150,000 + 15,000 - 10,000 - 10,000 - 50,000) / 250,000

= 18%

<u>With new product:</u>

Gross profit percentage = Gross profit / Net sales

= (Net sales - COGS) / Net sales

= (250,000 + 45,000  - 150,000 - 38,000) / (250,000 + 45,000)

= 36.3%

Return on sales ratio = EBIT / Net sales

= (Gross profit + other income - Administrative expenses - Other expense - Selling expenses) / Net sales

= (250,000 + 45,000  - 150,000 - 38,000 + 15,000 - 10,000 - 10,000 - 50,000) / (250,000 + 45,000)

= 52,000 / 295,000

= 17.6%

3 0
3 years ago
Margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Since she doe
Fynjy0 [20]

Answer:

b. an indicator of quality.

Explanation:

Margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Since she does not know much about wine, she will likely use the price of the wines as an indicator of quality.

Value-based pricing is a strategy of setting prices primarily <u>based on a consumer's perceived value of a product or service. </u>

<u>Price is an Indicator of Value From a consumer's standpoint because it is often used to indicate value when it is compared with perceived benefits such as the quality .</u>

3 0
3 years ago
Based on the Information that follows, prepare the cost of goods sold section of a multiple-step income statement.
Shtirlitz [24]

Answer:

Cost of goods sold = $105,060

Explanation:

a) Data and Calculations:

Cost of goods sold section of the multi-step income statement:

Merchandise Inventory, January 1, 20--       $37,000

Purchases                                                       102,000

Purchases Returns and Allowances               (4,200)

Purchases Discounts                                       (2,040)

Freight-In                                                              800

Merchandise Inventory, December 31, 20--(28,500)

Cost of goods sold                                     $105,060

b) The cost of goods sold comprises the beginning inventory, purchases and freight-in costs incurred during the period, less purchases returns and discounts, and the ending inventory.  It represents the cost incurred directly for the goods sold.  This means that indirect costs are not included in the cost of goods sold.  Such costs are usually deducted as period costs before arriving at the net income.

7 0
3 years ago
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