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2 years ago

An increase in the price of bread produced domestically will be reflected in:

Business

1 answer:

Zina [86]2 years ago

3 0

The increase will reflect in the GDP deflator and the Consumer price index.

The GDP Deflator is used to measure the level of prices of all new and domestically produced goods and services in an economy.

So, when there is an increase in price, the nominal GDP (Increased), so the GDP deflator Increased as well.

Consumer Price index is used to measure the inflated price of goods and services which are faced by all consumer households.

So, when there is an increase in price, there is change in CPI .

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Dan Jacobs, production manager for GreenLife, invested in computer-controlled production machinery last year. He purchased th

gayaneshka [121]

Answer:

The pertinent focuses for Dan Jacobs choice are referenced beneath.

The new hardware would cost GreenLife $4,500,000
The new hardware would twofold the creation yield of the old apparatus

The expense of new hardware and the expansion in the creation yield by 100% are the future expenses and incomes and thus they are significant for dynamic.

The old apparatus is bought previously. Consequently, the price tag of the old apparatus is immaterial for dynamic procedure. Tho director ought to consider the resale estimation of old apparatus in the dynamic. Tho resale estimation of old apparatus ought to be deducted from the expense of new hardware so as to ascertain the net money surge to buy the new apparatus.

The director ought to set up an expense and advantage examination or ascertain NPV (net present estimation) of the venture (capital planning investigation) to introduce it before the leader of the organization. The extra costs identified with extra creation ought to likewise be thought of. This investigation would support the supervisor and the president in dissecting that whether they should buy the new machine or not.

4 0

3 years ago

Auditors may decide to perform some tests of controls or not perform any tests of controls, if inherent risk is assessed as ____

Ivanshal [37]

Answer: Moderate or low

Explanation:

Tests of Control are one by auditors to determine the effectiveness of the internal controls in the company in being able to detect accounting errors and anomalies.

If a company seems to have a moderate or low inherent risk the Auditors may or may not initiate Tests of Control due to this reduced risk.

If the company however, has either high or moderate or unusually high risk, the Auditors have to perform Tests of Control to determine where the company is going wrong.

6 0

2 years ago

Adam Plastics, Inc., manufactures plastic moldings for car seats. Its costing system utilizes two cost categories, direct materi

inysia [295]

Answer:

c. $385,958.90

Explanation:

Step 1 Determine the Total Cost Incurred for Both materials and Conversion

Raw Materials

Opening Work In Process $200,000

Add Cost Added during the year $2,000,000

Total $2,200,000

Conversion

Opening Work In Process $200,000

Add Cost Added during the year $2,500,000

Total $2,700,000

Step 2 Determine the total equivalent units for materials and conversion

Materials

Closing work in process 100 × 100% = 100

Completed and Transferred (600+200-100)×100% =700

Total =800

Conversion

Closing work in process 100 × 30% = 30

Completed and Transferred (600+200-100)×100% =700

Total =730

Step 3 Determine equivalent cost per unit of materials and conversion costs

Materials = $2,200,000/800 = $2,750

Conversion = $2,700,000/730 = $3,699

Step 4 Determine the cost assigned to Ending WIP

Materials ($2,750×100) = $275,000

Conversion Cost ($3,699×30) = $110,970

Total =$385970

5 0

3 years ago

For the year ended December 31, a company had revenues of $187,000 and expenses of $109,000. $37,000 in dividends were paid duri

Dovator [93]

Answer:

D) Debit income summary 187000, credit revenues 187000

Explanation:

When dividend is declared, following journal entry is passed

Retained Earnings Dr.

To Dividend Payable

(Being declared dividend recorded)

When dividends are actually paid, the journal entry is

Dividend Payable A/C Dr.

To Cash A/C

(Being dividend paid recorded)

Income summary account is prepared as a temporary account while income statement represents permanent account.

Income summary shows net income balance i.e Revenue less expenses.

As per the given information in the question, debiting income summary account with total revenues of $187000 would be wrong.

3 0

3 years ago

The Bethlehem Inn is an all-equity firm with 9,000 shares outstanding at a value per share of $26.80. The firm is issuing $39,93

IgorLugansk [536]

Answer:

Value of equity = 9,000 x $26.80 = $241,200

Value of debt issued = $39.932

Value of equity after debt repayment = $241,200 - $39,932

= $201,268

No of equity outstanding after debt repayment = $201,268

$26.80

= 7,510 shares

Explanation:

In this regard, there is need to determine the value of equity after debt repayment, which is value of equity minus value of debt repaid. Then,we will divide the value of equity after debt repayment by the value of equity per share. This gives the number of shares outstanding after debt repayment.

3 0

3 years ago