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3 years ago

What are the disadvantages of using big macs to measure purchasing power parity? (check all that apply.)?

2 answers:

5 0

The Economist magazine in the year 1986, proposed a new index as an alternate measure for exchange rate. This new index studies the price of a Big Mac and compares them to calculate exchange rates. It was argued that McDonald was already established in many countries. Therefore, it can be used as a yardstick to compare the purchasing power of various countries. Hence, serves as a measure of purchasing power party. The main problem with this as that not everybody’s consumption basket includes Bug Macs. Rather, a fraction of the total population consumes it. Instead of representing a basket of diverse goods, it represents a basket consisting of a single commodity. As a result, Big Mac index will not reflect true cost of living.

AnnZ [28]3 years ago

4 0

While a familiar benchmark, the number of people who know of Big Macs are not comparable to those who buy them regularly. Thus, comparing a not-as-commonly purchased product with living essentials (such as staple foods and toiletries) provides a level of disconnect that hinders the very comparison it is intended to support.

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On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following informati

BlackZzzverrR [31]

Answer:

The answer is $243,000

Explanation:

The inventory on July 8 immediately prior to the fire is the CLOSING INVENTORY.

To find this closing inventory, we need to find the gross profit first and then cost of sales.

To find gross profit:

Gross profit margin=gross profit ÷sales.

Gross profit margin is 20% or 0.2

Sales is $690,000

Therefore, gross profit is:

0.2 x $690,000

=$138,000

To find cost of sales:

Gross profit = sales - cost of sales.

Gross profit is $138,000

Sales is $690,000

Therefore, cost of sales is

$690,000 - $138,000

=$552,000.

And finally to get closing inventory:

Cost of sales = opening inventory + purchases - closing inventory.

Cost of sales = $552,000

Opening inventory = $140,000

Purchases = $655,000

Closing inventory = $140,000+$655,000-$552,000

=$243,000.

6 0

4 years ago

Laura is head of ABC Systems. She needs to allocate a fixed amount of funds to various projects. There are two top projects that

TEA [102]

Answer: A. dialectic method

Explanation:

The DIALECTIC METHOD or DIALECTICS at it's basic level is a sort of debate between people of opposing viewpoints who wish to use the debate to come up with the best viewpoint by stating the facts and truths of their viewpoints.

They speak on whatever misgivings they may have about the other and explain in a logical manner why their views are better.

It is 'sort' of like a debate because unlike debates, it isn't supposed to get emotional but be fact and merit based.

3 0

3 years ago

Activity Expected Costs Expected Activity Handling materials $ 625,000 100,000 parts Inspecting product 900,000 1,500 batches Pr

bekas [8.4K]

Answer and Explanation:

The computation is shown below:

1. Plant wide overhead rate = Budgeted Overheads ÷ Budgeted Activity.

where,

Budgeted Overheads :

Handling materials 625,000

Inspecting product 900,000

Processing purchase orders 105,000

Paying suppliers 175,000

Insuring the factory 300,000

Designing packaging 75,000

Total Cost 2,180,000

And, the budgeted activity is 125,000

So, Plant wide overhead rate is

= Budgeted Overheads ÷ Budgeted Activity.

= $2,180,000/125,000

= $17.44 per direct labor hour

Now Assignment of Overheads

As Deluxe model required 2,500 direct labor hours

So, Deluxe model = 2,500 × $17.44

= $43,600

As Basic model required 6,000 direct labor hours

So, Basic model = 6,000 × $17.44

= $104,640

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3 years ago

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dangina [55]

Answer:

D) An efficient and fair way to help poor

<h3>Hope this helps you </h3>

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4 years ago

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barxatty [35]

The right answer is community settings :D

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3 years ago

What are the disadvantages of using big macs to measure purchasing power​ parity? ​(check all that apply.​)?

What are the disadvantages of using big macs to measure purchasing power parity? (check all that apply.)?