Answer:
B) $ 485 $ 170
Explanation
The cost of goods manufactured includes all the manufacturing costs in a given period adjusting for changes in work in process balances. The total manufacturing costs are $ 630 but this results in an increase in work in process inventory by $ 145, so in other words, part of the total manufacturing costs have gone towards increasing the work in process balance.
So the cost of goods manufactured is $ 630 - $ 145 = $ 485.
The cost of goods sold is the cost of goods manufactured above adjusted for changes in finished goods.
so the cost of goods sold is $ 485 - $ 315 ( change in finished goods inventory) = $ 170.
Answer: Capital Expenditure
Explanation:
Capital Expenditure occurs if the expense made was to enhance the capability of an asset to perform the role for which it was acquired over an extended period of time.
The new motor and tires will go a long way in making sure that the Truck benefits the company over a long period of time and so should be considered CAPITAL EXPENDITURE.
Do comment if you need any further clarification.
Answer:
b. aggregate supply; aggregate demand
Explanation:
Answer:
Transactions costs.
Explanation:
Transactions costs are the cost that a business incurs in the course of making a trade. It is not directly part of the product but is realised during transacting activities.
Examples of transaction cost includes legal fees, charges on communication, cost incurred in finding information on price, and labour that conveys product to the market.
Determining transaction cost is important because if transaction costs are high income will reduce, while low transaction cost result in higher income.
