Answer:
The 50.30 days are required to take its credit customers to pay for their purchases.
Explanation:
For computing the average collection period, we have to use the formula of the average collection period.
Average collection period = Average accounts receivable ÷ Credit sales × total number of days in a year
= $107,900 ÷ $783,000 × 365
= 0.13780 × 365
= 50.30 days
We assume 365 days in a year
The cost of goods sold is irrelevant. Thus, it is not considered in the computation part.
Hence, 50.30 days are required to take its credit customers to pay for their purchases.
Answer:
c. believe in the use of fiscal policy to stabilize the economy.
Explanation:
According to Keynesian theory, the sum of some micro-economic behaviors of all individuals and businesses results in inefficiency and the economy operates at a level below its potential output and growth. When total demand for products is insufficient, the economy enters a crisis and unnecessary unemployment arises due to defensive behavior of the producers. In such cases, the government may pursue policies to increase aggregate demand, and as a result may accelerate economic activities and reduce unemployment. Most Keynesian propose policies to stabilize the business cycle. For example, when the unemployment level is too high, the state can pursue a growth-oriented monetary policy. , one of the most famous of his critiques, Keynes argues and did not agree with "The Laissez-faire" that he opined the doctrines of laissez-faire are dependent on some extent on a case-by-case basis.
Answer:
E) None of these answer choices is correct.
Explanation:
<u>Overhead bases on labor hours:</u>
250 units / 25 per batch: 10 batch
total overhead cost: $ 2,000 setup per batch x 10 batch= $ 20,000
20,000 overhead cost / 1,000 labor hours = 20 dollars per hour
1,000 labor hours / 250 units of output: 4 labor hours per unit
4 labor hours x $ 20 = $ 80
<u>Overhead based on activity:</u>
Setup cost: 2,000
units per batch: 25
$ 2,000 / 25 units = $ 80
