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3 years ago

Indicate what components of GDP (if any) each of the following transactions would affect. Check all that apply.

Business

1 answer:

Archy [21]3 years ago

3 0

Answer:

not included

consumption

government spending

consumption

business spending

consumption and inventory (consumption increases and business inventory reduces)

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.

Items not included in the calculation off GDP includes:

1. services not rendered to oneself

2. Activities not reported to the government

3. illegal activities

4. sale or purchase of used products

5. sale or purchase of intermediate products

6. transfer payments

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Norbert works in a beauty salon. he receives a 50% employee discount for salon services. in 2016, he used his discount to buy $1

Crank

The answer is D. $600. In general, the employee discount didn't result in taxable income to the recipient. The amount that may be excluded in relation to services purchased by employees, however, is limited to 20% of the amount normally charged to non-employee customers. As a result, Norbert would be able to exclude an employee discount up to 20% x $2,000 or $400 with the remaining $600 included in gross income.

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3 years ago

For each of the annual inflation rates given in the following table, first determine the new price of a movie ticket, assuming i

Mazyrski [523]

Answer:

see below

Explanation:

The balance in Lucia's account is 1.05 times the original deposit, reflecting addition of 5% interest for the year.

The ticket price is the original price multiplied by (1 + inflation rate). The number of tickets that Lucia can purchase is the account balance divided by the ticket price. The quotient is rounded down to the nearest integer.

The "real interest rate" is the percentage change from the original number of tickets that could be purchased.

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3 years ago

As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of So

julsineya [31]

Answer:

SORIA COMPANY

Clothing Department

Flexible Budget Report

For the Month Ended October 31, 2017

See attachment.

In flexible budgeting, the fixed costs are assumed to be constant within the relevant range. Only the variable costs are flexed.

Workings:

1. Sales Commission = $1,680/8,400 x 9,000 = $1,800

2. Advertising = $1,176/8400 x 9,000 = $1,260

3. Travel Expense = $4,032/8,400 x 9,000 = $4,320

4. Free Samples = $1,680/8,400 x 9,000 = $1,800

Explanation:

The flexible budget is one that flexes the activity level or volume in order to recognize changes that may arise. This changes the base volume of the variable costs.

To achieve this, the value under the static budget is divided by the static budget volume and multiplied by the flexed budget volume(s).

In this case, when the budget was flexed from the static sales volume of 8,400 to 9,000 in accordance with the actual volume achieved, the favorable value was increased from $1,188 to $1,800 more than 50% increase.

The implication is that a flexible budget helps to better evaluate performance than its opposite, the static budget.

Download xlsx

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3 years ago

Why is it beneficial for businesses to be stationed in cities?

masya89 [10]

Because there are more buyers of your product and more suppliers for the things you need.

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3 years ago

The following data were provided by Mystery Incorporated for the year ended December 31: Cost of Goods Sold $ 159,000 Income Tax

Kryger [21]

Answer: