Answer:
Letter A is correct. <u>Fostering competition.</u>
Explanation:
In this case, it is correct to say that small businesses are fostering competition.
Competition in the business world can be defined as a situation where two or more companies that supply products are rivals in the quest to conquer the same market and the same customers.
Large companies often have some dominance and influence over the market, which means that they impose various barriers to market entry by other competing companies, especially if they are micro-companies. In the case of the above question, when there are a large number of small companies looking to establish themselves in a specific niche in the market, due to possible retaliation by large companies, together, they are exerting an influence on the market that promotes competition.
Answer:
A. that involves double-counting.
Explanation:
Imagine a company that produces furniture. If we would include the wood, the nails, the wood paint, etc., were included in the calculation plus the furniture itself, you would be double-counting the cost of the manufactured furniture. If you consider waste materials, then you would be adding even more costs. That is why you only consider finished goods.
Answer:
The correct answer is C.
Explanation:
Giving the following information:
Fixed manufacturing overhead cost of $497,000, variable manufacturing overhead of $2.40 per direct labor-hour, and 70,000 direct labor-hours.
T 498:
Total direct labor-hours 80
First, we need to calculate the estimated manufacturing overhead rate for the period:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= (497,000/70,000) + 2.4= $9.5 per direct labor hour.
Now we can allocate the overhead to Job 498:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 9.5*80= $760
Answer:
increasing government spending by $4 billion.
Explanation:
A rightward shift of aggregate demand means that aggregate demand is increasing.
When the government increases spending, the effect on aggregate demand is given by ⇒ total change in spending x government spending multiplier
- total change in spending = $4 billion
- government spending multiplier = 1 / MPS = 1 / 0.1 = 10
effect on aggregate demand = $4 billion x 10 = $40 billion
