Inflation can impose significant costs and adversely distort economic systems. Indicate whether the costs and distorting effects exemplify menu costs, shoe leather costs or unit of account costs. a. discourages people from holding money. b. can reduce the quality of economic decisions. c. can lead to stores listing prices in more stable currencies. d. spending time converting money into something that better holds value. e. makes money a less reliable source of measurement. f. can cause distortion to the tax system. g. causes difficulty in firms and individuals financial planning. h. causes costs associated with changing prices in stores.1. Menu costs.2. Shoe-leather-costs. 3. Unit-of-account costs.

Answers

Answer 1

Answer:

1. Menu costs

- Can lead to stores listing prices in more stable currencies.

- Causes costs associated with changing prices in stores.

2. Shoe-leather-costs

- Discourages people from holding money.

- Spending time converting money into something that better holds value.

3. Unit-of-account costs

- Can reduce the quality of economic decisions.

- Makes money a less reliable source of measurement.

- Can cause distortion to the tax system.

- Causes difficulty in firms and individuals financial planning.


Related Questions

Last year Baron Enterprises had $350 million of sales, and it had $270 million of fixed assets that were used at 65% of capacity last year. In millions, by how much could Baron's sales increase before it is required to increase its fixed assets

Answers

Answer:

$188.46 million

Explanation:

Firstly, calculate sales at full capacity

Sales at full capacity = Sales at current capacity / % of capacity

Sales at full capacity = $350 million / 0.65

Sales at full capacity = $538.46 million

Increase in sales without increase in fixed assets = Sales at full capacity - Sales at current capacity

Increase in sales without increase in fixed assets = $538.46 million - $350 million

Increase in sales without increase in fixed assets = $188.46 million

Walt Bach Company has accumulated the following budget data for the year 2019.
Sales: 40,000 units, unit selling price $55.
Cost of one unit of finished goods: Direct materials 2 pounds at $5 per pound, direct labor 1.5 hours at $16 per hour, and manufacturing overhead $6 per direct labor hour.
Inventories (raw materials only): Beginning, 10,000 pounds; ending, 15,000 pounds.
Selling and administrative expenses: $200,000.
Income taxes: 30% of income before income taxes.
Instructions
(a) Prepare a schedule showing the computation of cost of goods sold for 2013.
(b) Prepare a budgeted income statement for 2013.

Answers

Answer:

Walt Bach Company

a) Schedule of Cost of Goods Sold

Direct materials =                 $400,000 (2*$5*40,000)

Direct labor =                          960,000 (1.5*$16*40,000)

Manufacturing overhead =    360,000 ($6*60,000)

Total cost of goods sold = $1,720,000

b) Budgeted Income Statement for 2013

Sales Revenue          $2,200,000

Cost of goods sold      (1,720,000)

Gross profit                   $480,000

Selling and admin. exp.  200,000

Income before tax        $280,000

Income tax (30%)             (84,000)

Net income                   $196,000

Explanation:

a) Budget Data and Calculations:

Sales: 40,000 units, unit selling price $55, Revenue = $2,200,000

Cost of one unit of finished goods:

Direct materials 2 pounds at $5 per pound = $400,000 (2*$5*40,000)

Direct labor 1.5 hours at $16 per hour = $960,000 (1.5*$16*40,000)

Manufacturing overhead $6 per direct labor hour = $360,000 ($6*60,000)

Inventories (raw materials only):

Beginning, 10,000 pounds;

Ending, 15,000 pounds.

Selling and administrative expenses: $200,000.

Income taxes: 30% of income before income taxes.

The idea of rational expectations suggests that :_________
a) It is unrealistic for Congress to balance the federal budget during a recession.
b) Discretionary policies and fine-tuning can move the economy to full employment.
c) Economic policies are ineffective if the policies are anticipated.

Answers

Answer:C

Explanation:The theory believes that because people make decisions based on the available information at hand combined with their past experiences, most of the time their decisions will be correct.

Henderson Electronics Corporation manufactures and sells FM radios. Information on the prior year's operations (sales and production Model A1) is presented below: Sales price per unit $30 Costs per unit: Direct material 7 Direct labor 4 Overhead (50% variable) 6 Selling costs (40% variable) 10 Production in units 10,000 Sales in units 9,500 Refer to Henderson Electronics Corporation. The Model B2 radio is currently in production and it renders the Model A1 radio obsolete. If the remaining 500 units of the Model A1 radio are to be sold through regular channels, what is the minimum price the company would accept for the radios

Answers

Answer:

$4

Explanation:

Calculation to determine the minimum price the company would accept for the radios

Minimum price=Selling costs (40% variable)*$10

Minimum price=$4

Therefore the minimum price the company would accept for the radios will be $4 because it COVER THE VARIABLE SELLING EXPENSE

Assume that a company sets the transfer price for a product made by division A and sent to division B as full cost 10%. Further assume that division A is treated as a profit center. Discuss the incentives this situation creates for the manager of division A and why it is not in the company's best interest. (30 words maximum)

Answers

Answer and Explanation:

The manager of division A has the advantage of always selling at a profit since his department is positioned to always sell at profit to division B. However, selling at a transfer price to another department has the tendency to bring an incoherence of operations and decisions in the organization as a whole. If transfer price is high, it is possible that employees of department B may be demotivated as the high costs may negate operations and therefore look bad on their performance.

applying macroeconomic knowledge to explain the fiscal policy of countries in 2008

Answers

Hmm this us hard i am 14

Suppose that 57% of all people with credit records improve their credit rating within three years. Suppose that 22% of the population at large have poor creditratings within three years. What percentage of then people who will improve their credit records within the next three years are the ones who currently have good credit ratings? ratings, and of those only 25% will improve their credit

Answers

Answer:

(a) The percentage of people currently have poor credit ratings and will improve their credit records within the next three years is 12.54%.

(b) The percentage of the people who will improve their credit records within the next three years are the ones who currently have good credit ratings is 44.46%.

Explanation:

Note: This question is not properly arranged. It is therefore, properly rearranged before answering the question as follows:

Suppose that 57% of all people with credit records improve their credit ratings within three years. Suppose that 22% of the population at large have poor credit records, and of those only 25% will improve their credit ratings within three years. (a) What percentage of people currently have poor credit ratings and will improve their credit records within the next three years? (b) What percentage of the people who will improve their credit records within the next three years are the ones who currently have good credit ratings?

The explanation of the answers is now provided as follows:

Based on the question, we have:

Percentage that improve credit rating = 57%

Percentage that do NOT improve credit rating = 100% - Percentage that improve credit rating = 100% - 57% = 43%

Percentage with poor credit rating = 22%

Percentage with good credit rating = 100% - Percentage with poor credit rating = 100% - 22% = 78%

Therefore, we have:

(a) What percentage of people currently have poor credit ratings and will improve their credit records within the next three years?

Percentage with poor credit rating that will improve credit records = Percentage with poor credit rating * Percentage that improve credit rating = 57% * 22% = 12.54%

Therefore, the percentage of people currently have poor credit ratings and will improve their credit records within the next three years is 12.54%.

(b) What percentage of the people who will improve their credit records within the next three years are the ones who currently have good credit ratings?

Percentage with good credit rating that will improve credit rating = Percentage that improve credit rating * Percentage with good credit rating = 57% * 78% = 44.46%

Therefore. the percentage of the people who will improve their credit records within the next three years are the ones who currently have good credit ratings is 44.46%.

26 . Alpha Co. can produce a unit of Beta for the following costs: Direct Material $4 Direct Labor 12 Overhead 20 TOTAL $36 An outside supplier offers to provide Alpha with all the Beta units it needs at $30 per unit. If Alpha buys from the supplier, Alpha will still incur 50% of its overhead. The proper decision and the total relevant cost to compare with the $30 purchase price are:

Answers

Answer:

b. Make, $26

Explanation:

Options are "A. Buy, $26. B. Make, $26. C. Buy, $36. D. Make, $36 E. Buy, $40"

Calculation of total relevant cost

Direct materials          $4

Direct labor                 $12

Overhead                    $10 ($20 * 50%)

Total relevant cost    $26

Since the relevant cost is $26 when making, so the proper decision and the total relevant cost to compare with the $30 purchase price are "Make, $26".

Northwest Hospital is a full-service hospital that provides everything from major surgery and emergency room care to outpatient clinics.

Required:
For each of the following costs incurred at Northwest Hospital, indicate whether it would most likely be a direct cost or an indirect cost of the specified cost object by listing the number and a "D" for direct or an "I" for indirect. For example: 1D, 2D, etc.

a. The wages of pediatric nurses / The pediatric department
b. Prescription drugs / A particular patient
c. Heating the hospital / The pediatric patient
d. The salary of the head of pediatrics / The pediatric patient
e. The salary of the head of pediatrics / The particular pediatric patient
f. Hospital chaplain's salary / A particular patient
g. Lab tests by outside contractor / A particular patient
h. Lab tests by outside contractor / A particular department

Answers

Answer:

Northwest Hospital

aD

bD

cI

dI

eI

fI

gD

hD

Explanation:

Direct costs are costs that are directly traceable to the production of goods and services and can be identified with a unit of production.  While direct costs are usually variable, some direct costs can be fixed.

Indirect costs are costs that support the operation of the company.  They cannot be traced to any unit of production.  Similarly, some indirect costs are variable while others are fixed.

what is a marginal cost?​

Answers

The cost added by producing one additional unit of a product or service

Blum Company produces three products: A, B, and C from the same process. Joint costs for this production run are $2,100. Pounds Sales price per lb. at split-off Disposal cost per lb. at split-off Further processing per pound Final sales price per pound A 800 $6.50 $3.00 $2.00 $7.50 B 1,100 8.25 4.20 3.00 10.00 C 1,500 8.00 4.00 3.50 10.50 If the products are processed further, Blum Company will incur the following disposal costs upon sale: A, $3.00; B, $2.00; and C, $1.00. Refer to Blum Company. Using a physical measurement method, what amount of joint processing cost is allocated to Product A (round to the nearest dollar)

Answers

Answer:

$416

Explanation:

Calculation to determine the amount of joint processing cost that is allocated to Product A

First step is to determine the split-off Total

Yards Sales price

at split-off Total

A 800 *$6.50= $5,200

B 1,100* $8.25= $9,075

C 1,500*$8.00=$12,000

Total $26,275

Now let determine the amount of joint processing cost that is allocated to Product A

Product A joint processing cost=($5,200/$26,275) * $2,100

Product A joint processing cost=$416

Therefore Using a physical measurement method, what amount of joint processing cost is allocated to Product A is $416

5.Which of the following is a valid Excel formula?
a) =C4*D4
b) B4*D4
c) Both =C4* and B4*D4
d) Neither =C4* nor B4*D4

Answers

A) =C4*D4 is the correct answer.

By tying the salaries of top corporate managers to the price of the corporation's stock, corporations hope to avoid:

Answers

Answer:

the principal-agent problem

Explanation:

In the case when there is a tied of the top corporate managers salary with the price of the corporation stock so here the corporation should avoid the principal agent problem as it deals with the conflict with respect to the priorities that lies between the person and the representative.

So the above should be the answer

Alyssa is working on a campaign to re-forest areas in Indonesia and needs to collate progress reports from the fund-raising and communication departments. She has yet to receive the communication report from the communications manager, Elizabeth. She knows that Elizabeth is working on multiple projects and is currently facing a time crunch. Which of the following should Alyssa use to write a persuasive direct request to Elizabeth asking for the progress report?

a. "We will establish a good image of our organization if we can send the reports on time."
b. "We can prevent delaying the third phase of our campaign if we send out the reports on time."
c. "I was wondering if you could send the report to me once you are relatively free from your work."
d. "Please send the progress report for the communication part of the campaign by March 20."
e. "The fund-raising department has sent in their report. Is there a way you can send in yours?"

Answers

Answer: b. "We can prevent delaying the third phase of our campaign if we send out the reports on time."

Explanation:

For Alyssa to write a persuasive direct request to Elizabeth asking for the progress report, she can write "We can prevent delaying the third phase of our campaign if we send out the reports on time"

The emphasis here is about being proactive and not delaying the work on ground so that the task will be completed on time. When compared to other options, it'll lead to non-delay of the task and the task will be sent on time rather than sending it when Elizabeth feels like sending it.

BCtronics Corp. issued 12 year bonds 2 years ago with a coupon rate of 9.2%. The bonds make semiannual payments and have a $1,000 par value. If these bonds currently sell for 104% of par value, what is the YTM

Answers

Answer:

8.60%

Explanation:

Face value of the bond = $1000

Years = 10 years (12-2). Semiannual number of periods = 20 (10*2)

Semiannual coupon rate = 9.2%/2 = 0.046

Semiannual coupon payment amount = 0.046*1000 = 46

Present value = 1000*104% = $1040

Value of YTM can be derived using Ms excel

Yield to maturity = YTM (No of periods, Payments, Present value, Face value) * 2

Yield to maturity = YTM (20, 46, 1040, 1000) * 2

Yield to maturity = 4.30% * 2

Yield to maturity = 8.60%

You are considering purchasing a car with a sticker price of $36,270 (non negotiable with no down payment required). You wish to make monthly payments for six years and the most that you would like to pay is $600 a month. Your local bank/credit union has agreed to loan you the money at a 4.29% annual interest rate. Create an amortization table reporting the beginning/ending loan balance, total payment, the portion of payment going to interest and principal, and remaining loan balance. Create a IF statement that answers the question of whether you can afford the loan. What is your monthly loan payment and what is the total interest paid on the loan

Answers

Answer:

1. Amortization Table:

Amortization Schedule

 Beginning Balance Interest Principal Ending Balance

1 $36,270.00 $129.67 $442.59 $35,827.41

2 $35,827.41 $128.08 $444.17 $35,383.24

3 $35,383.24 $126.50 $445.76 $34,937.48

4 $34,937.48 $124.90 $447.35 $34,490.12

5 $34,490.12 $123.30 $448.95 $34,041.17

6 $34,041.17 $121.70 $450.56 $33,590.61

7 $33,590.61 $120.09 $452.17 $33,138.44

8 $33,138.44 $118.47 $453.79 $32,684.65

9 $32,684.65 $116.85 $455.41 $32,229.25

10 $32,229.25 $115.22 $457.04 $31,772.21

11 $31,772.21 $113.59 $458.67 $31,313.54

12 $31,313.54 $111.95 $460.31 $30,853.23

Year #1 End

13 $30,853.23 $110.30 $461.96 $30,391.27

14 $30,391.27 $108.65 $463.61 $29,927.67

15 $29,927.67 $106.99 $465.26 $29,462.40

16 $29,462.40 $105.33 $466.93 $28,995.47

17 $28,995.47 $103.66 $468.60 $28,526.88

18 $28,526.88 $101.98 $470.27 $28,056.60

19 $28,056.60 $100.30 $471.95 $27,584.65

20 $27,584.65 $98.62 $473.64 $27,111.01

21 $27,111.01 $96.92 $475.33 $26,635.68

22 $26,635.68 $95.22 $477.03 $26,158.64

23 $26,158.64 $93.52 $478.74 $25,679.90

24 $25,679.90 $91.81 $480.45 $25,199.45

Year #2 End

25 $25,199.45 $90.09 $482.17 $24,717.29

26 $24,717.29 $88.36 $483.89 $24,233.40

27 $24,233.40 $86.63 $485.62 $23,747.77

28 $23,747.77 $84.90 $487.36 $23,260.42

29 $23,260.42 $83.16 $489.10 $22,771.32

30 $22,771.32 $81.41 $490.85 $22,280.47

31 $22,280.47 $79.65 $492.60 $21,787.86

32 $21,787.86 $77.89 $494.36 $21,293.50

33 $21,293.50 $76.12 $496.13 $20,797.37

34 $20,797.37 $74.35 $497.91 $20,299.46

35 $20,299.46 $72.57 $499.69 $19,799.78

36 $19,799.78 $70.78 $501.47 $19,298.31

Year #3 End

37 $19,298.31 $68.99 $503.26 $18,795.04

38 $18,795.04 $67.19 $505.06 $18,289.98

39 $18,289.98 $65.39 $506.87 $17,783.11

40 $17,783.11 $63.57 $508.68 $17,274.43

41 $17,274.43 $61.76 $510.50 $16,763.93

42 $16,763.93 $59.93 $512.32 $16,251.60

43 $16,251.60 $58.10 $514.16 $15,737.45

44 $15,737.45 $56.26 $515.99 $15,221.45

45 $15,221.45 $54.42 $517.84 $14,703.61

46 $14,703.61 $52.57 $519.69 $14,183.92

47 $14,183.92 $50.71 $521.55 $13,662.37

48 $13,662.37 $48.84 $523.41 $13,138.96

Year #4 End

49 $13,138.96 $46.97 $525.28 $12,613.68

50 $12,613.68 $45.09 $527.16 $12,086.52

51 $12,086.52 $43.21 $529.05 $11,557.47

52 $11,557.47 $41.32 $530.94 $11,026.53

53 $11,026.53 $39.42 $532.84 $10,493.70

54 $10,493.70 $37.51 $534.74 $9,958.95

55 $9,958.95 $35.60 $536.65 $9,422.30

56 $9,422.30 $33.68 $538.57 $8,883.73

57 $8,883.73 $31.76 $540.50 $8,343.23

58 $8,343.23 $29.83 $542.43 $7,800.81

59 $7,800.81 $27.89 $544.37 $7,256.44

60 $7,256.44 $25.94 $546.31 $6,710.12

Year #5 End

61 $6,710.12 $23.99 $548.27 $6,161.86

62 $6,161.86 $22.03 $550.23 $5,611.63

63 $5,611.63 $20.06 $552.19 $5,059.43

64 $5,059.43 $18.09 $554.17 $4,505.27

65 $4,505.27 $16.11 $556.15 $3,949.12

66 $3,949.12 $14.12 $558.14 $3,390.98

67 $3,390.98 $12.12 $560.13 $2,830.85

68 $2,830.85 $10.12 $562.14 $2,268.71

69 $2,268.71 $8.11 $564.15 $1,704.57

70 $1,704.57 $6.09 $566.16 $1,138.40

71 $1,138.40 $4.07 $568.19 $570.22

72 $570.22 $2.04 $570.22 $0.00

Year #6 End

2. IF monthly payment is <$600, then take the loan.

3. The monthly payment is $572.26

4. The total interest paid on the loan is $4,932.42.

Explanation:

a) Data and Calculations:

Car loan = $36,270

Expected payment per month = $600

Loan interest rate = 4.29%

Period of payments = 6 years or 72 months

Results:

Payment Every Month   $572.26

Total of 72 Payments   $41,202.42

Total Interest   $4,932.42

Tip Top Corp. produces a product that requires 11 standard gallons per unit. The standard price is $4.5 per gallon. If 4,500 units required 50,500 gallons, which were purchased at $4.27 per gallon, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance

Answers

Answer:

Explanation:

To calculate the direct material price, quantity, and total variance; we need to use the following formulas:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (4.5 - 4.27)*50,500

Direct material price variance= $11,615 favorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (11*4,500 - 50,500)*4.5

Direct material quantity variance= $4,500 unfavorable

Total direct material cost variance= 11,615 - 4,500

Total direct material cost variance= $7,115

Explain the relationships between a firm’s short-run production function and its short-run cost
function

Answers

Answer:

The answer is below

Explanation:

The relationships between a firm’s short-run production function and its short-run cost function can be explained by considering the firm's short-run cost function as a form of closely related but opposite in direction of its production function.

This implies that when the firm's short-run cost function increases its marginal product, its marginal cost decreases, and in contrast, when its marginal product decreases its marginal cost commences to increase

which industries operates at the primary stage of production​

Answers

Answer:

raw material extraction

Explanation:

any industry that extract raw material for onward production is considered a primary stage.

The ________ phase of the customer relationship management process is where organizational learning occurs based on customer response to the implemented strategies and programs.

Answers

Answer:

The analysis and refinement phase of the customer relationship management process is where organizational learning occurs based on customer response to the implemented strategies and programs.

Answer: analysis and refinement

Why do people establish their own business?​

Answers

Answer:

financial freedom

Explanation:

the reasons people start their own business is usually because they desire financial freedom meaning they would like have more disposable resources for themselves.

Mystery, Inc. is contemplating selling bonds. The issue is to be composed of 800 bonds, each with a face amount of $750. How much is Mystery, Inc. able to borrow (in total) if each bond is sold at 95% of par

Answers

Answer:

$570,000

Explanation:

Calculation to determine How much is Mystery, Inc. able to borrow (in total) if each bond is sold at 95% of par

Using this formula

Total Amount borrowed=Bonds*Face value*95% of par

Let plug in the formula

Total Amount borrowed=800*$750*0.95

Total Amount borrowed=$570,000

Therefore the amount the Mystery, Inc. will be able to borrow (in total) if each bond is sold at 95% of par is $570,000

After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet, the totals of the debit and credit columns show debits of $28,480 and credits of $38,055. This indicates that a.the company has a net income of $9,575 for the period. b.neither net income or loss can be calculated because it is found on the income statement c.the amounts are out of balance and need to be corrected. d.the company has a net loss of $9,575 for the period.

Answers

Answer:

This indicates that

d.the company has a net loss of $9,575 for the period.

Explanation:

a) Data and Calculations:

Total debits of the balance sheet (assets) = $28,480

Total credits of the balance sheet (liabilities + equity) = $38,055

Difference (net loss) = $9,575 ($38,055 - $28,480)

b) With the determination of the net loss of $9,575, the two sides (debits and credits) of the balance sheet will equal.  This is because the net loss of $9,575 will reduce the credits from $38,055 to $28,480.

J&H Corp. recently hired Jeffrey. His immediate mandate was to analyze the company. He has to submit a report on the company's operational efficiency and estimate potential investment in working capital. He has the income statement from last year and the following information from the company's financial reports as well as some industry averages.
Last year, J&H Corp. reported a book value of $500 million in current assets, of which 20% is cash, 22% is short-term investments, and the rest is accounts receivable and inventory
The company reported $425.0 million of current liabilities including accounts payable and accruals. Interestingly, the company had no notes payable claims last year. There were no changes in the accounts payables during the reporting period
The company, however, invested heavily in plant and equipment to support its operations. It reported a book value of $800 million in long-term assets last year
Income Statement For the Year Ended on December 31 (Millions of dollars)
Industry &H Corp Average $4,875 3,900 195 4,095 $780 Net sales $3,900 3,120 156 3,276 $624 62 $562 225 $337 Operating costs, except depreciation and amortization Depreciation and amortization Total operating costs Operating income (or EBIT) Less: Interest Earnings before taxes (EBT) Less: Taxes (40%) Net income $663 265 $398
Based on the information given to Jeffrey, he submits a report on January 1 with some important calculations for management to use, both for analysis and to devise an action plan. Which of the following statements in his report are true?
a. The company is using-$35.0 million in net operating working capital acquired by investor-supplied funds
b. J&H Corp.'s NOPAT is $374.4 million, which is lower than the industry average of $468.0 million
c. J&H Corp. has $110.0 million in nonoperating assets.
d. The firm uses $765.0 million of total net operating capital to run the business.
e. J&H Corp.'s net operating working capital is $75.0 million.

Answers

Answer:

c. J&H Corp. has $110 million in non operating assets.

e. J&H Corp's net operating working capital is $75 million.

Explanation:

NOPAT = EBIT ( 1 - Tax)

Tax is 40%

NOPAT = 663 * 60% = $698

Total currents assets $500 million and long term assets are 800 million.

The non Operating assets are 22% which is $110 million.

Net operating working capital = Current assets - Current liabilities

Net operating Working capital = 500 - 425 = $75 million.

Widget Manufacturing Company is preparing a profit budget and has projected that net sales will equal $470,000 for the period and that fixed manufacturing costs will be $150,000. Additionally, Widget expects variable manufacturing costs to be 35% of net sales. Widget manufacturing expects no changes to any inventory values from the beginning of the period to the end of the period. Use this information to determine Widget Manufacturing Company's budgeted gross profit. En g

Answers

Answer:

the Widget Manufacturing Company's budgeted gross profit is $155,500

Explanation:

The computation of the Widget Manufacturing Company's budgeted gross profit is shown below:

Value of Opening inventory = Value of Closing inventory

As we know that  

Gross profit = Sales- Variable Expenses- Fixed cost

= $470,000 - $164,500(35% of $470,000 ) -$150,000

= $155,500

Hence, the Widget Manufacturing Company's budgeted gross profit is $155,500

types of equilibrium​

Answers

Neutral equilibrium

Unstable equilibrium

Stable equilibrium

When Alice started working, she has decided to deposit $250 a pay check into a savings account that earns an interest of 1% per month. She gets paid on the last day of every month. Which of the following expression may be used to determine the account value 10 years from now?

a. F= [250/0.01] (F/P, 1%, 60)
b. F = 250[(P/A, 1%, 120) (F/P, 12%, 5)]
c. F= 250(F/A, 1%, 120)
d. F = [3,000(P/A, 12%, 10)] [(F/P, 12%, 10)]

Answers

Answer:

The correct option is c. F= 250(F/A, 1%, 120).

Explanation:

Since she gets paid on the last day of every month, implies we are to the determine the future value (F) of an ordinary annuity. Therefore, the original expression for the future value (F) of an ordinary annuity is as follows:

F= A(F/A, i, n) …………………. (1)

Where:

F = Future value

A = Periodic or monthly amount = $250

F/A = Convert A to F

i = monthly interest rate = 1%

n = number of months = Number of years * number of months in a year = 10 * 12 = 120

Substituting the values into equation (1) except F/A, we have:

F= 250(F/A, 1%, 120) …………………… (1)

Therefore, the correct option is c. F= 250(F/A, 1%, 120).

Note:

Note that inputting equation into a scientific calculator will give the following future value (F):

F = $57,509.67

Rules of Debit and Credit The following table summarizes the rules of debit and credit. Indicate whether the proper answer is a debit or a credit. Increase Decrease Normal Balance Balance sheet accounts: Asset Credit Liability Credit Stockholders' equity: Common Stock Credit Retained Earnings Credit Dividends Debit Credit Income statement accounts: Revenue

Answers

The table represents the normal debit balance of the following accounts also the increment or decrement related to these accounts is as follows:

The following information should be considered:

The asset, dividend & expenses contains the normal debit balance. And, the liability & equity should contain the normal credit balance.

Particulars                  Increase    decrease     normal balance

Asset                          debit           credit            debit

liability                        credit         debit             credit

common stock          credit         debit             credit

retained earnings      credit         debit             credit

dividend                      debit           credit            debit

revenue                    credit         debit             credit

expense                     debit           credit            debit

In this way, the above table should be presented.

Learn more about the debit here: brainly.com/question/12269231

Forte Co., had 5,900 units of work in process on April 1 that were 70% complete. During April, 18,000 units were started and as of April 30, 5,400 units that were 40% complete remained in production. How many units were completed during April

Answers

Answer:

18,500 units

Explanation:

We simply use the physical units to determine the units completed

Units completed = Units in opening inventory  + units started - units in ending inventory

therefore,

Units completed = 5,900 +  18,000 - 5,400 = 18,500

therefore,

Units completed during April amount to 18,500

Koczela Inc. has provided the following data for the month of May: Inventories: Beginning Ending Work in process $ 29,000 $ 24,000 Finished goods $ 58,000 $ 62,000 Additional information: Direct materials $ 69,000 Direct labor cost $ 99,000 Manufacturing overhead cost incurred $ 75,000 Manufacturing overhead cost applied to Work in Process $ 73,000 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. The cost of goods manufactured for May is:

Answers

Answer:

cost of goods manufactured= $246,000

Explanation:

To calculate the cost of goods manufactured, we need to use the following formula:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 29,000 + 69,000 + 99,000 + 73,000 - 24,000

cost of goods manufactured= $246,000

Other Questions
What is one way of planning your presentation?by creating an outlineby rearranging your imagesby thinking about your audienceby creating and revising a presentation Culture is inherent, meaning it is something we are born with.A. TrueB. False Which of these are tag words that can be used to show that you're about to include a direct quote in your research report?intimated, avows, thought, laughsaccording to, comments, confirmed, indicateswhispered, shouted, looks, seemsdemands, grasped, yelled, wants What is the area of this trapezoid? What is the mean of the following numbers?x-3a,x-2a,x-a,x,x+a what is the meaning of cheque stub Please help Question 12 (1 point) Where does food enter the human body?Question 12 options:belly noseanusmouthQuestion 13 (1 point) Bile is stored in theQuestion 13 options:gall bladderliverpancreassmall intestineQuestion 14 (1 point) What things does the stomach make? (select all correct answers)Question 14 options:salivamucusacidchemicalsQuestion 15 (1 point) Waste comes out of the body by theQuestion 15 options:anuslarge intestineappendixsmall intestineQuestion 16 (1 point) The proper name for 'poop' is feces.Question 16 options: True False Put these numbers in order from greatest to least.0.24,0.57,0.87, and 3/5 Find the value of x. The statement "Money is the root of all evil" is an example of a ...A. PlotB. SubjectC. ThemeD. Climax You are considering purchasing a car with a sticker price of $36,270 (non negotiable with no down payment required). You wish to make monthly payments for six years and the most that you would like to pay is $600 a month. Your local bank/credit union has agreed to loan you the money at a 4.29% annual interest rate. Create an amortization table reporting the beginning/ending loan balance, total payment, the portion of payment going to interest and principal, and remaining loan balance. Create a IF statement that answers the question of whether you can afford the loan. What is your monthly loan payment and what is the total interest paid on the loan consider a population consisting of values 2, 3, 5, 7. what is the population standard deviation? what are the difference between blood in the renal artery and blood in the urethra The Byzantine Emperor Alexius III promised the crusades money if they fought for him, which they did. But he was slow to pay his debt and was dethroned before he paid his debt, which led the crusaders to A. turn on the Venetians who had led them astray in the first place. B. go onto Jerusalem, since that was their original goal anyway. C. give up and go home.D. sack Constantinople, the center of Byzantine Christianity and the largest Christian city. what is kinematics ??? What is the length of AC?Geometry, see attachment. Which of the following questions is a statistical question? what is a sustainable resource? Perform the followingmathematical operation, andreport the answer to the correct number of significant figures.0.008/51.3[?] x 10^[?] explains this: a light source can emit more than one type of light