CVP analysis is more difficult because its requires costs to be broken down between variable and fixed which is not done in absorption costing.
<h3>What is a
CVP analysis?</h3>
This is an analysis that find out how changes in the firm's variable and fixed costs affect the firm's profit.
Hence, the analysis is difficult when using absorption costing than when using variable costing because its requires costs to be broken down between variable and fixed which is not done in absorption costing.
Read more about CVP analysis
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Answer:
0.2
Explanation:
The Probability distribution is the function which describes the likelihood of possible values assuming a random variable. The 10% of the items from the production line are assumed to be defective. There is a sample selection of 2 items. The probability that one of the item among the selected sample of two items is found defective is 0.2 (2 items sample *10%)
Answer:
Economic recession
Explanation:
A recession occurs when an economy faces a negative real GDP for two successive quarters or more. In a business cycle, the recession would be a period that occurs between the peak and the trough.
A recession can be caused by many factors:
1. High interest rates
2. High unemployment
3. Low consumer and business confidence
It is possible to say that all factors are interconnected. For example, when interest rates are higher, it means that people will spend less on borrowed money, as now borrowing money is more costly. This in turn means that demand for products are lower, leading to lower business confidence. When sales are low, businesses may attempt to cut back on costs to ensure profits. This can take the form of laying off workers. Hence, unemployment in the economy will increase. Consumer confidence will also plummet.
Some consequences may include:
1. Fall in inflation: As aggregate demand in the economy falls, price levels will fall. Thus, reducing inflation.
2. Government deficit: the government may have to start spending more on expenditures such as unemployment benefits. On the other hand, income generated from corporate/income taxes will fall. Fall in income and rise in expenditure causes a deficit.
3. Environmental pollution is less: Due to less movement in the economy, polluting factors such as factory smoke, vehicle congestion and waste send to landfill will be much lesser. This would prove to be beneficial for the environment.
It is called "stare decisis." It is Latin for <span>"to stand by decided cases."</span>
Answer:
Product prices will be increased by resource price. A further explanation is given below.
Explanation:
- When individuals have already had time, throughout the longer term, to change certain long-term obligations. A rise in population, as well as a higher level of costs, can no doubt mean an increase in the amount generated. Throughout the long term, the powers causing the rise in the sum usually provided mostly in the shorter term would not be available.
- When the long-term current expires and has been tried to negotiate, expenditures that are already temporarily set as a part of the contractual deal will increase. If this continues, the resource price could well raise the price of additional goods, which should not modify the desire to manufacture.
