Answer: ( C ) Health care spending accounts
Explanation: All of the following are automatic stabilizers, except: Health care spending accounts.
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Answer:
The answer is;
Deviation is the difference between the observed value of a quantity and the true value, residual is the difference between the observed value of a quantity and the mean of the observed values
Explanation:
The error of an observed value is the deviation of the observed value from the true value of a quantity of interest (for example, a population mean).
The residual of an observed value is the difference between the observed value and the estimated value of the quantity of interest (for example, a sample mean)
Answer:
D. produces output and earns an economic profit.
Explanation:
The firm will produce as making the product will pay the cost of the units produced with the current market price of the final good.
As the price is above the average total cost the firm will also earn an economic profit (that is after the accounting profit of explicit cost we subtract the opportunity cost with are implicit in any business and even there, the company manages to get a profit.
Answer and Explanation:
According to the scenario, journal entries for the given data are as follows:
Journal Entries
Sep. 12 Stock investment in Aspen company A/c Dr. $162,180 (3,600×$45)+$180
To Cash A/c $162,180
( Being purchase is recorded)
Oct. 15 Cash A/c Dr. $4320 (3,600×$1.2)
To Revenue from dividend A/c $4320
( Being dividend revenue is recorded )
Nov. 10 Cash A/c Dr. $54,648 (1,440×$38)-$72
Loss due to sale of investment A/c Dr. $10,224 ($64,872 - $54,648)
To Investment in Aspen company investment A/c $64,872 (1,440× $45)+$72
( Being sale is recorded)
Answer:
5 units and $2,175
Explanation:
a. The computation of the economic order quantity is shown below:
= 
=
= 2,000 units
The total cost of ordering cost and carrying cost equals to
= Annual ordering cost + Annual carrying cost
= Purchase cost + Annual demand ÷ Economic order quantity × ordering cost per order + Economic order quantity ÷ 2 × carrying cost per unit
= 10,000 × $8 + 10,000 ÷ 2,000 × $150 + 2,000 ÷ 2 × $0.75
= 80,000 + $750 + $750
= $81,500
Now in case of ordering 5,000 yields at discount price of $6.50 the total cost is
= Purchase cost + Annual demand ÷ Economic order quantity × ordering cost per order + Economic order quantity ÷ 2 × carrying cost per unit
= 10,000 × $6.50 + 10,000 ÷ 5,000 × $150 + 5,000 ÷ 2 × $0.75
= $65,000 + 300 + $1,875
= $67,175
Therefore there will be 5 units should store at a time and cost of inventory is 300 + $1,875 = $2,175
