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3 years ago

Which situation best illustrates the effects of inflation?

Business

1 answer:

Vlad1618 [11]3 years ago

7 0

Answer: C: The cost of rice at a market rises by 20 percent over three years.

Explanation:

inflation is a measure of the rate of rising prices of goods and services in an economy.

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Indiana Co. began a construction project in 2018 with a contract price of $161 million to be received when the project is comple

Montano1993 [528]

Answer:

b. Recognized $12.37 million gross profit on the project in 2018.

Explanation:

IFRS-15 that deals with Revenue from Construction Contracts requires companies to follow a 4-step approach to record entries for contract when the performance obligation is satisfied over a period of time. These steps are:

1) Calculate the overall profit

Contract Price - Total Costs ( Incurred + Estimated)

⇒ 161 - 122 (40 + 82) = $39 million.

2) Determine the progress of the contract

(Cost to date / Total cost) * 100

⇒ (40 / 122) * 100 = 32.79%

3) Statement of Profit or Loss (If Profitable)

Revenue (Total Price * Progress) ; (161 * .3279) $52.79

Cost of Sale (Total costs * Progress) ; (122 * .3279) (40)

Gross Profit $12.79

The difference arises of $.42 million is because of rounding, ignore it. We choose the closest option in MCQs, always remember this.

Note: Step 4 is related to Balance Sheet which is not the requirement of this question, so skipped.

Thanks!

4 0

3 years ago

Tell me about a time when you made a mistake.. How did you find it and what did you do to correct it?

padilas [110]

Answer:

When I first became an assistant manager of a sales branch, I tried to take on everything myself, from the day-to-day operations of the branch to making all of the big sales calls. I quickly learned that the best managers know how to delegate effectively so that work is done efficiently. Since then, I have won numerous awards for my management skills, and I believe a lot of this has to do with my ability to delegate effectively.

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3 years ago

Why is it important to include industry terminology in a résumé? How can you find industry terminology?

Simora [160]

Including industry terminology will show you are "current" with the profession and know what the trends are at this time.

4 0

3 years ago

An investment that has earned a high rate of return over the last 5 years will necessarily continue to perform well in the futur

bija089 [108]

The answer is false. The investment is profitable if the total of all the adjusted cash inflows and the outflows is higher than zero. The Positive net cash inflow additionally indicates that the rate of return exceeds the 5% discount rate.

The required rate of return (RRR) for a stock with a high beta in relation to the market should be higher for investors utilizing the inflows CAPM calculation. The Investors must be compensated for the increased level of risk associated with investing in the higher beta stock by the greater RRR in comparison to other the investments with low betas.

To learn more about investments, click here.

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4 0

2 years ago

Marigold Industries incurs unit costs of $8 ($5 variable and $3 fixed) in making an assembly part for its finished product. A su

Veronika [31]

Answer:

The preparation of an incremental analysis is given below

Explanation:

The preparation of an incremental analysis is shown below:

Particulars Make Buy Net Income - Increase/(Decrease)

Variable Manufacturing Cost

(10,300 × $5) $51,500 - $51,500

Fixed Manufacturing Cost

(10,300 × $3) $30,900 $30,900 -

Purchase Price (10,300 × 6) - $61,800 $(61,800)

Total Annual Cost $82,400 $92,700 $(10,300)

By above calculation, we can interpret that the marigold should make the part as it would became cheaper but it also saves the cost of $10,300

4 0

4 years ago