Answer:
D. deficit of $1 trillion; surplus of $4 trillion
Explanation:
If the economy reaches their potential at 12 trillion the government would run a deficit of 1 trilllon which means there is an structural deficit of 1 trillion
As currently there is a surplus of 3 trillion This mean the economy is in a cycle under which there is a surplus of 4 trillion
current budget - structural budget = cyclical
3 - (-1) = 3 + 1 = 4
Answer:
Cost of Goods Sold( COGS)
Explanation:
Costs of goods sold ( COGS)or cost of sales is the expense incurred in manufacturing goods sold in a period. COGS is composed of the direct cost incurred in manufacturing goods sold by a business. The direct cost includes direct materials, labor, and direct overhead costs. Direct labor is the total of wages and salaries paid to workers involved directly in the production process.
Calculation of the cost of goods sold involves adding beginning inventory to purchases and subtracting the ending inventory.
Answer: economic forces
Explanation: In simple words, economic forces refers to the group of factors such as purchasing power, political stability etc. that directly affects the business operations of the firm.
In the given case, KFC is studying the living and purchasing power of the individuals in foreign countries before starting their operations in such countries.
Hence we can conclude that they are examining economic forces.
Answer: Amortization
Explanation: In simple words, amortization refers to the process under which the value of an asset is reduced over time due to wear and tear that occurs over time. It is similar to depreciation but this term is applied for intangible fixed assets such as goodwill and patents.
In such process, the initial cost of the asset is decreases over time on the basis of predetermined basis and methods. It involves transferring the cost of the intangible asset to expense account.
