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3 years ago

Write an essay about the effect of cost and production on our economy.

Business

1 answer:

matrenka [14]3 years ago

8 0

Answer:

Costs and production are both very important for the economy.

Explanation:

Costs are the values of the goods and services used for the production of other goods and services. For example, for the production of a chair, we must factor the cost of the raw material: wood, and the cost of direct labor: the wage of the carpenter.

Costs therefore, are crucial in determining the amount of output in an economy.

Cost also determine help determine the market structure of the economy. In general terms, when costs are high, profits are lower, which attracts less firms to the sector, and results in less competitive market structures such as oligopoly or monopoly.

The opposite is true when costs are low, because in this situation profits are likely to be higher, which attracts more firms to the sector, resulting in more competitive market structures like perfect competition or monopolistic competition.

Finally, we can say that the production of goods and services is important because it is the most important factor in determining the living standars of people in an economy. When many goods and services are produced, people obtain higher incomes because they are paid for the production of these goods and services.

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"Clauss Company transfers out 14,000 units and has 2,000 units of ending work in process that are 25% complete. Materials are en

diamong [38]

Answer:

a. $112,000

b. $7,500

Explanation:

(a) transferred out

Units transferred out are 100% complete for both materials and conversion costs, thus multiply the Total Cost per Equivalent units with the number of units transferred.

Cost of units transferred out = $8 × 14,000 units

= $112,000

(b) in ending work in process

Units of ending work in process are 100% complete in terms of materials ( since materials are entered at the beginning of the process) whilst 25% complete in terms on conversion cost (applied uniformly during production).

Cost of ending work in process

Materials ($3 × 2,000 units) = $6,000

Conversion ($3 × (2,000 units × 25%)) = $1,500

Total Cost = $7,500

6 0

4 years ago

"The Marlene Doll Co. uses a process costing system. Consider the following data for Dept. A. UNITS: W-1-P Nov. 1: 8,000 units,

Law Incorporation [45]

Answer:

The Marlene Doll Co.

Weighted-AVerage Method

Cost of production:

COSTS: W-1-P Nov. 1: $9,600 $4,800

Costs added in November: 15,600 14,400

Total costs for the month $25,500 $19,200

Equivalent units of production:

Units Materials Conversion

Transferred to Dept B: 12,000 12,000 12,000

W-1-P Nov. 30: 6,000 6,000 3,000

Equivalent units 18,000 15,000

Cost per equivalent units:

Materials Conversion

Total costs for the month $25,500 $19,200

Equivalent units 18,000 15,000

Cost per equivalent unit $1.42 $1.28

Costs assigned to:

Units Transferred to Dept B: $17,040 $15,360 $32,400

(12,000 *$1.42) (12,000 * $1.28)

W-1-P Nov. 30: 8,520 3,840 12,360

(6,000 *$1.42) (3,000 * $1.28)

Total costs assigned $25,560 $19,200 $44,760

FIFO Method

Equivalent units of production:

Units Materials Conversion

W-1-P Nov. 1: 8,000 0 (0%) 2,000 (25%)

Units started & completed: 10,000 10,000 10,000

W-1-P Nov. 30: 6,000 6,000 3,000

Equivalent units 16,000 15,000

Cost per equivalent units:

Materials Conversion

Total costs for the month $15,600 14,400

Equivalent units 16,000 15,000

Cost per equivalent unit $0.975 $0.96

Costs assigned this month to:

Work-in-Process $0 $1,920 $1,920

(0 *$0.975) (2,000 * $0.96)

Units completed $9,750 $9,600 $19,350

(10,000 *$0.975) (10,000 * $0.96)

W-1-P Nov. 30: 5,850 2,880 8,730

(6,000 *$0.975) (3,000 * $0.96)

Total costs assigned $15,600 $14,400 $30,000

Total costs of:

Units transferred out $19,350 $16,320 $35,670

W-1-P Nov. 30: 5,850 2,880 8,730

Total costs $25,200 $19,200 $44,400

Explanation:

a) Data and Calculations:

Dept. A. UNITS:

Units Materials Conversion

W-1-P Nov. 1: 8,000 100% 75%

Started in November: 10,000

Transferred to Dept B: 12,000 100% 100%

W-1-P Nov. 30: 6,000 100% 50%

6 0

3 years ago

Due to recent political and economic events, general prices of goods and services are expected to increase significantly over th

melomori [17]

Answer:

a. Inflation

Explanation:

In the context of economics, inflation refers to the increase in the price of goods and services

Moreover, we also know that

(1 + Nominal rate of return) = (1 + real rate of return) × (1 + inflation rate of return)

According to the given situation, it is mentioned that The general goods and services prices are expected to rise substantially over the next five years which represents the concept of inflation

Hence, the option a is correct

5 0

3 years ago

The manager of a computer software company wishes to study the number of hours senior executives by type of industry spend at th

miskamm [114]

Answer:

Since the calculated value of F= 5.733 falls in the critical region we reject the null hypothesis and conclude all three means are not equal.

Explanation:

The given data is

Banking Retail Insurance

12 8 10

10 8 8

10 6 6

12 8 8

10 10 10

The results of excel are:

Anova: Single Factor

SUMMARY

Groups Count Sum Average Variance

Column 1 5 54 10.8 1.2

Column 2 5 40 8 2

Column 3 5 42 8.4 2.8

1) Let the null and alternate hypotheses be

H0: u1=u2=u3 i.e all the three means are equal and

Ha: Not all three means are equal

2) The significance level is set at ∝ =0.05

3)The test statistic to use is

F= sb²/ sw²

which has F distribution with v1= k-1 →3-1=2 and v2= n-k →15-3=12 degrees of freedom

After calculations the following table is obtained.

ANOVA

Source SS df MS F P-value F crit

of Variation

B/w Groups 22.93 2 11.467 5.733 0.01788 3.885

Within Groups 24 12 2

Total 46.93 14

4) The critical region is F ≥ F(0.05, 2,12) = 3.885

5) Since the calculated value of F= 5.733 falls in the critical region we reject the null hypothesis and conclude all three means are not equal.

4 0

3 years ago

Which of the following statements is true regarding the Unrealized Loss on Investments account

max2010maxim [7]

Answer:

B) It is reported on the income statement when it pertains to short term investments

Explanation:

Unrealised loss is defined as a reduction in the value of an asset that is held by an investor rather than selling it and realising a loss.

Unrealised loss is also called paper loss. This loss is not realised until the asset is sold.

Unrealised losses are not usually recorded on the income statement unless they intend to be sold in a short time.

When a security is to be sold in the short run it is called a trading security. Trading securities are represented in the income statement as they can increase or reduce income

8 0

3 years ago