Question
A manufacturing firm includes administrative overheads
and interest costs in inventory valuation during a slowdown. Which accounting principle is violated?Solution
Inventory must not include abnormal costs like interest or administrative overheads unrelated to production. Including them inflates asset values, violating the prudence concept.
If demand is price inelastic, then
What is the value of elasticity of substitution in case of Cobb Douglas function?
Demonetization refers to
Consider the following:
Statement 1: There exists an inverse relationship between market rates of interest and price of bond
Statement 2...
If a tax is placed on the product in this market, tax revenue paid by the buyers is the area
If one’s consumption of a good does not diminish the quantity of good available for consumption by someone else, the consumption is__________.
...C= 0.8(1-t)Y , t=0.25, I=200 and G=800. Calculate the change in output when tax rate increases to 0.50
If Y is preferred over X lexicographically. If income is 100 and price of x=1 and price of y is10, then at optimal bundle the total amount of X is
When C = 200 + 0.75(Y − T), I = 200 − 25r, G = 100, T = 100. Find IS curve function.
A company using first-degree price discrimination has a demand curve given by P=100−2Q. If the marginal cost of production is $10 per unit, what is th...
