Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator. The CPI for this year is calculated by dividing <u>the value of all goods and services produced in the economy this year </u>using <u>this year's prices</u> by the<u> value of all goods and services produced in the economy this year</u> using <u>the base year's prices</u> and multiplying by 100. However, the GDP deflator reflects only the prices of all goods and services bought by the consumers.
<u>Explanation:</u>
GDP is the gross domestic product of a country which specifies the level of growth of the country. The value of the goods and the services of the country produced by the people of the country are all reflected in the gross domestic product of the country.
Greater the rate of GDP is of a particular country, higher would be the growth of the country. It is also used as a measure of comparison of the growth rate of the country.
Answer:
D. society’s scarce resources are used to produce products that align with consumer preferences
Explanation:
Allocation efficiency is a point in the economy when the goods and services being produced are exactly what the customers or people of the economy want and this is a point of production when marginal social benefit of producing the good is equal to the producers marginal cost.
Answer:
a. $13
b. $20,625 Unfavorable
Explanation:
a. Computation of overhead volume variance is shown below:-
Variable overhead rate = Variable overhead cost ÷ Expected standard hours
= $275,000 ÷ 25,000
= 11 direct labor hour
Fixed overhead rate = Productive capacity ÷ Expected standard hours
= $50,000 ÷ 25,000
= $2 direct labor hour
Total overheard rate = Variable overhead rate + Fixed overhead rate
= $11 + $2
= $13
b. The computation of overhead controllable variance is shown below:-
Variable overhead cost = Overhead rate × Standard hours
= $11 × 21,875
= $240,625
Fixed overhead cost = Overhead rate × Standard hours
= $2 × 21,875
= $43,750
Total overhead cost = $13 × 21,875
= $284,375
Actual result = $305,000
Variance = Actual result - overhead cost applied
= $305,000 - $284,375
= $20,625 Unfavorable
Working note:-
Standard direct labor hours = Actual units ÷ Standard hours
= 35,000 × 1.6
= $21,875
Standard units per hour = (Standard capacity × Expected production) ÷ Standard hours
= (50,000 units × 80%) ÷ 25,000 hours
= 1.6 units per hour
Answer:
$3,484.85
Explanation:
Calculation to determine tax-equivalent value
Using this formula
Tax-equivalent value=Nont-taxable amount/(1-Tax rate)
Let plug in the formula
Tax-equivalent value=$2,300/(1-.34)
Tax-equivalent value=$2,300/.66
Tax-equivalent value=$3,484.85
Therefore A nontaxable employee benefit with a value of $2,300 would have a tax-equivalent value of:$3,484.85
Answer:
It is $18,290.24
Explanation:
Profit after Tax (65%) = addition to retained earnings+dividend paid
= $411 + $285
= $ 696
Profit before Tax = [100/65] * $ 696
= $1070.76
Tax (35%) = 35% * $1070.76
= $374.77
Gross Profit = Profit before tax + Total expenses
= $1070.76 + [ $4,370+ $103+ $812]
= $6355.76
Cost of Sales= $24,646 -$6355.76
= $18,290.24 .
Note
-Dividend is paid is paid from profit after tax
