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Inventories are part of investment and therefore included in gdp because

Answer:

Explanation:

Inventories are part of investment and therefore included in GDP because firms produce goods and these goods may be unsold at the time GDP is computed

The value added method of calculating GDP recognizes inventory. Value added from raw materials to work in process and to finished goods are part of what goes into the computation of GDP

7 0

3 years ago

6. Trade deficit and the currency depreciation Which approach to the relationship between exchange rates and the trade balance p

emmasim [6.3K]

Answer:

The absorption approach

Explanation:

The absorption approach with respect to the balance of payments derives that a balance of trade of a country will only better if the output of the company in terms of goods and services rises by more than its absorption or utilization

Here, the absorption refers to incurred expenditure by the residents who are domestic on the goods and services.

Hence, according to the given situation, the appropriate option is absorption approach

5 0

4 years ago

How can firms avoid incurring high transport costs when exporting bulk products?

Sunny_sXe [5.5K]

Firms can avoid incurring high transport costs when exporting bulk products by manufacturing bulk products regionally.

Transportation costs are all the charges related to the transportation of uncooked substances, finished merchandise, and personnel. it is the cash at the back of ensuring all moving components get in what they want to be so your customers get their products or services on time.

Now, you need to determine all your transportation level costs. look at how lots you paid for drivers, gasoline, special licenses, purchasing/leasing motors, outsourced paintings, and every other system related to transportation. upload this kind of collectively to get the total fee of transportation.

Techniques of lowering logistic prices can range from optimizing stock degrees to recharting higher transport networks, to growing higher procedures, enhancing dealer/1/3 celebration relationships, and so on.

Learn more about Transportation here brainly.com/question/27667264

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7 0

2 years ago

The idea behind _________ is that how much you spend on department x is tied directly to how well department x is performing

julsineya [31]

It's budgeting. Hope this help

4 0

3 years ago

Assume instead that (a) freight costs were paid by the vendor, (b) no discounts were taken, and (c) the merchandise on hand at t

cricket20 [7]

Answer:

The missing part of the question is found below:

Cinnamon Buns Co. (CBC) started 2021 with $52,000 of merchandise on hand. During 2021, $280,000 in merchandise was purchased on account with credit terms of 2/10, n/30. All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $9,000. Merchandise with an invoice amount of $4,000 was returned for credit. Cost of goods sold for the year was $316,000. CBC uses a perpetual inventory system.

Option A,$318,000 is correct

Explanation:

The points to note in answering this question are :

The opening inventory of $52,000 was overvalued as $10,000 out of it was held for third as consignment,hence it does belong to Cinnamon Buns Co(CBC).

Secondly,in calculating the costs of goods available the freight charges are disregarded since it assumed to have been paid by the supplier.

Lastly discounts are assumed not have been taken,as a result the purchase and returns should be stated at invoice prices.

Restated opening inventory=$52,000-$10,000=$42,000

Merchandise purchased is $280,000

merchandise returned is $4,000

Costs of goods available=opening inventory+purchases-returns

=$42,000+$280,000-$4000

=$318,000

4 0

3 years ago