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Galina-37 [17]
3 years ago
12

The purpose of growth accounting is to estimate the contribution each component of the aggregate production function makes to ov

erall economic growth. estimate the growth rate of an economy. use the change in total factor productivity to estimate the growth rate of an economy. estimate the extent to which growing costs are affecting the overall performance of an economy.
Business
1 answer:
Paul [167]3 years ago
4 0

Answer:

Estimate the contribution each component of the aggregate production function makes to overall economic growth

Explanation:

Growth accounting is a quantitative tool used to estimate the contribution each component of the aggregate production function makes to overall economic growth.

Growth accounting was first developed by Robert Solow.

The growth accounting equation is :

Capital Growth*(Weight of Capital's Contribution) + Labour Growth*(Weight of Labour's Contribution) + Technological Advancement

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Answer:

Instructions are listed below.

Explanation:

Giving the following information:

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First, we need to calculate the estimated overhead rate:

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

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Sunk costs: are the losses which have already been incurred and which are unrecoverable. are the losses associated with failed b
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are the losses which have already been incurred and which are unrecoverable. 

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