Both of these leases should be classified as a capital lease. A capital lease is defined as a lease in which the person who is leasing the asset only finances the leased asset, all of the other rights of ownership are transferred to the person who is taking out the lease. This makes the lease a fixed asset because it is temporarily being used.
Scenario 7-5) Solutions Group managers suggest that clients consider doing a resonance test when designing advertising, because this will help understand target consumers regarding their
a.recognition of the brand.
b.potential purchase of the brand.
c.emotional connection to the brand.
d.attitude changes about the brand
Answer:
Option C is correct
Explanation:
This is used for measuring product experience of consumers on a particular brand. It tests products concept for emotional and functional design attributes such as consumer needs, believability(trust) and differentiation in level of product experience by customers.
Answer:
A) $24 billion
Explanation:
Here is the complete question :
Potential Real GDP $200 Billion
Natural Rate of Unemployment- 6 Percent
Actual Rate of Unemployment- 12 Percent
Refer to the accompanying data, which is for a specific year in a hypothetical economy for which Okun's law is applicable. The amount of output being forgone by the economy is
C) $15 billion. D) $18 billion. A) $12 billion. B) $24 billion.
According to Okun's law, a 1% decline in unemployment results in a 2% fall in potential GDP
Decline in unemployment = Actual Rate of Unemployment - Natural Rate of Unemployment
12 - 6 = 6%
decline in output = 6% x 2% = 12%
potential GDP lost = 12% x $200 Billion = 24 billion
Answer:
It is more convenient to produce in house.
Explanation:
Giving the following information:
Direct materials $ 4.00
Direct labor 8.00
Overhead 9.00
Total costs per unit $ 21.00
Direct materials and direct labor are 100% variable. The overhead is 80% fixed. An outside supplier has offered to supply the 61,000 units of RX5 for $19.00 per unit.
The fixed costs are unavoidable, therefore we will concentrate the analysis in the variable costs.
Make in house:
Unitary cost= 4 + 8 + (9*0.20)= $13.8
Buy= 19
Difference= 19 - 13.8= 5.2
It is more convenient to produce in house.
