Answer:
a.
Explanation:
Based on the scenario being described within the question it can be said that the statement that is most likely true is that the product cost of product B will be higher under ABC than under traditional costing. This is because Activity-based costing (ABC) bases their overhead costs on the actual consumption by each while traditional costs overhead is applied based on the amount of machine hours consumed. Therefore since product B is characterized as having lots of consumption then it's product cost will be higher under ABC costing.
Answer:
1
Explanation:
a market is a place is the point of interaction between buyers and sellers
Both Company P and Company Q will need to achieve a profit margin of 10% to generate a 20% return on investment based on the given sales and average operating asset data.
To calculate the margin required for each company to generate a 20% return on investment, we need to use the formula:
ROI = Margin x Asset Turnover
Where ROI is the return on investment, Margin is the profit margin, and Asset Turnover is the ratio of sales to average operating assets.
Let's assume that Company P has sales of $1,000,000 and average operating assets of $500,000, while Company Q has sales of $2,000,000 and average operating assets of $1,000,000.
For Company P:
ROI = 20%
Asset Turnover = Sales / Average Operating Assets = $1,000,000 / $500,000 = 2
Therefore, Margin = ROI / Asset Turnover = 20% / 2 = 10%
So, Company P will need to earn a profit margin of at least 10% to generate a 20% return on investment.
For Company Q:
ROI = 20%
Asset Turnover = Sales / Average Operating Assets = $2,000,000 / $1,000,000 = 2
Therefore, Margin = ROI / Asset Turnover = 20% / 2 = 10%
So, Company Q will also need to earn a profit margin of at least 10% to generate a 20% return on investment.
Learn more about investment: brainly.com/question/29547577
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producers
investors
People who make goods and services are called PRODUCERS.
They are called producers because they produce the goods and services needed by the consumers.
Increase reserve requirement
Lower the discount rate
Buy of government securities
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Question 2 (Multiple Choice Worth 5 points)
[04.04MC]
Which of the following actions would the Federal Reserve most likely take during an economic recession?
Increase reserve requirement
Raise interest rates
Lower discount rate
Sell government secur
The Federal Reserve could increase reserve requirement to control inflation by restricting money supply, and lower the discount rate during an economic recession to stimulate spending and economic activity.
To rein in spiraling inflation, the Federal Reserve would most likely increase reserve requirement. This means they would require banks to hold a larger portion of their assets in reserve, thus decreasing the amount available to lend, stifling the supply of money, and helping to control inflation.
On the other hand, during an economic recession, the Federal Reserve would most likely take the opposite approach. To stimulate the economy, they would likely lower the discount rate. This move would make it cheaper for banks to lend money, thereby encouraging consumer and business spending and potentially help stimulate the economy out of recession.
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