Which inventory method generally results in costs allocated to ending inventory that will approximate their current costs? FIFO. The FIFO inventory method stands for first-in, first-out. This method allows businesses to keep track of their inventory on an old inventory out before the new inventory basis. The first out inventory is recorded as the first items sold even if they aren't exactly the oldest item.
Answer:
Both options C and D are correct.
Explanation:
Inflation refers to an increase in the general price level of goods and services overtime. Since it is conveyed in the question that the general price level in a later year became twice as high, inflation definitely occurred. Hence, option D is correct.
Nominal GDP is the value of the total output at current market prices. Real GDP adjusts that value for inflation. As prices double, nominal GDP ought to increase from $400m to $800m. However, it actually rose to $1000m. This additional increase of $200m shows that the real GDP has risen. However, the increase in real GDP is less than 100%. This implies option C is also correct.
Answer:
Option (D) is correct.
Explanation:
Diwali Airlines has a contract,
Given that,
There is an opportunity to purchase jet fuel upto = 10,000,000 gallons
Price = $2 per gallon
Current market price of jet fuel = $2.26 per gallon
The value of this opportunity:
= Jet fuel needed × (Current market price - $2)
= 6,000,000 gallons × $0.26
= $1,560,000
Answer:
The answer is: C) decrease; increase
Explanation:
Currency appreciation occurs when the value of one currency increases in relation to another currency. In this case, country A´s currency will gain value against the currency of countries B and C (C´s currency is pegged to B´s currency).
This means that products from country A will be more expensive than products from countries B and C, which should lower country A´s exports and increase its imports.
