Answer:
C.) Cash budget.
Explanation:
As the name sounds is exactly what it directly entail; as it explains the direct input and output flow pattern of cash in a said organisation or firm. And in most cases, it is seen to access these funds and their usage pattern.
In this case, it can know and give heads up on when their is cash shortage or when a form does not have enough liquidity funds to run it. That is why here, direct and labour budgets are parts of what makes up the cash budget.
When the economy is not at full employment and an expansionary monetary policy is followed:
- Interest rates decrease
- Investment spending increases
When there is an expansionary monetary policy in place, more money is pumped into the economy which means that there are more loanable funds. This increase in the supply of loanable funds will decrease the interest associated with them.
As a result of interest rates being lower, more businesses and people will be able to borrow money and invest in projects thereby increasing investment spending.
In conclusion, there will be an increase in investment spending due to a decrease in interest rates.
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Answer:
Explanation:
1. Jasper Company
Income Statement
Sales (280000 x $12) $3360000
<u>Less: Cost of goods sold</u>
Add: Direct Material $180000
Add: Direct Labor $505000
Add: Manufacturing Overhead <u>$110000</u>
Cost of goods sold <u>($795000)</u>
Gross Profit $ 2565000
<u>Less: Expenses</u>
Selling expense $437000
Administrative expense <u>$854000</u>
Total expenses <u>($1291000)</u>
Net income <u> $1274000</u>
Percentage of sales for each line item
Sales = 100%
Cost of goods sold:
x 100= 23.7%
Selling expense :
x 100 = 13%
Administrative expense:
x 100 = 25.4 %
2. According to the income statement in requirement 1, the manager can control cost by outsourcing the product if it is cheaper to get it from a third party in order to cut/control cost of goods sold.
Manager can also try controlling the administrative expenses as they are taking a bigger proportion than any other cost/ expense.
Answer:
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Explanation: