Answer:
The double-declining depreciation method.
Explanation:
The double-declining is an accelerated asset depreciation method. The method seeks to recognize most of an asset depreciation in its first years of existence. It is referred to as double-declining because it uses twice the depreciation rate of the straight-line method.
The double-declining method is suitable for assets that are consumed at a high rate during the initial stages of their useful life. Organizations that prefer to incur more expenses on an asset earlier and enjoy profits later, or those wishing to defer taxes, can also use this method.
Answer:
$73,000
Explanation:
Data provided in the question:
Selling Price per unit = $55
Variable rate per unit = $15
Budgeted fixed costs = $20,000
Number of chairs sold = 3,100
Now,
Contribution per unit = Selling Price per unit - Variable rate per unit
= $55 - $25
= $30
Therefore,
Total contribution = Contribution per unit × Number of chairs sold
= $30 × 3,100
= $93,000
Hence,
Operating income = Total contribution - Budgeted fixed costs
= $93,000 - $20,000
= $73,000
Answer: The options are given below:
A. an increase in aggregate demand
B. an increase in national income
C. an increase in gross domestic product
D. decrease in the general price level
E. a decrease in employment
The answer is E. A decrease in employment.
Explanation: Contractionary Supply shock refers to a decrease in aggregate demand, thereby resulting in a decrease in both the price level and real Gross Domestic Product (GDP).
When this event occurs, the economy will enter into a recessionary gap which will lead to an underutilization of factors of production.
This will therefore lead to point whereby the demand for labor and input materials will be so low, and eventual laying off of workers, and in this situation, the workers will be willing to work for less wages and input prices will fall.
Answer:
A. target costing
Explanation:
To make the new price level profitable, ConAgra Foods used target costing.
Target costing may be seen as an accountancy approach during which companies set targets for costs supported the worth prevalent within the market and therefore the margin of profit they need to earn. Keeping its costs below the relevant targets helps the businesses to get profit.
Target cost = selling price – margin of profit
Profit margin could also be supported cost or selling price .
In most of the industries competition is high which suggests that prices are determined by the interaction of market demand and provide which the market participants i.e. producers can’t change. However, they will control their costs.
Answer:
A. True
Explanation:
As per the given situation, if the yield curve is sloping upwards, it indicates that short-term interest rates are smaller than long-term interest rates.
In this case the bonds have an opposite relationship between the bond price and interest rates and If the short-term rates are lower then the value of the short-term bonds which includes the current liabilities, is higher. Short term bonds are loans to be settled in one.
As we know that
Current ratio = Current assets - Current liabilities
Current liabilities include short-term debt, hence the short-term value is higher as a result of a low current ratio.
Therefore the given statement is true