Answer:
B. Cost of goods sold will be too low by $5,000.
Explanation:
Given that
Ending inventory overstated in the current year by $5,000
And, the net income is incorrectly reported $100,000
So, due to this error
The cost of goods sold is understated by $5,000
And, the net income is overstated by $5,000
Since the cost of goods sold is understated by $5,000 so it would be too low due to which the net income overstated by $5,000
Answer:
c. Higher-skilled workers are readily available at the higher wage.
Explanation:
the government decree would make the cost of hiring low skilled labour higher. As, a result there would be a reduction in the quantity demanded of low skilled labour.
if High skilled workers are readily available at the higher wage this would lead to a greater decrease in employment of low-skilled workers. Employers would ask themselves why pay the same high wages high skilled labour earns to low skilled labour when high skilled labour can be hired at the same price since most likely higher skilled workers would carry out the tasks better than lower skilled labour ?
Answer:
The correct answer is: increase relative to Industry B.
Explanation:
The marginal revenue product measures the conribution of each additional unit of input employed in the production process. It is calculated as the product of price of product and marginal product of input.
The profit maximizing level of wage is when the marginal revenue product of labor is equal to wages.
Suppose there are two goods, A and B respectively.
When the price of good A increases relative to good B, the marginal revenue product of labor employed in production of good B will increase as well.
This will cause the wage rate of those workers to increase in comparison to workers in industry B.
Answer:
a. Letter
Explanation:
A letter is written communication from one party to another. Letters are written on a designated paper, put in an envelope and send either by post or hand-delivered.
A letter can be formal or informal. Daniel should write a formal letter to his boss informing him of his resignation. Should Daniel write a letter, It will an official document in the company. The company will be file the document appropriately and will stay intact for many years.
Daniel can also keep a copy of the letter for himself. A letter has an advantage over the other electronic options. Electronic records can be deleted permanently or get lost should the systems collapse.
Both operating expenses and cost of goods sold (COGS) are expenditures that companies incur with running their business. However, the expenses are segregated on the income statement. Operating expenses and COGS measure different ways in which resources are spent in the process of running a company.
