The standard cost for variable manufacturing overhead is computed the same way as the standard cost for direct labor.
A predefined cost, an estimated future cost, an expected cost, a budgeted unit cost, a forecast cost, or the "should be" cost are all examples of standard costs. They are frequently included in a manufacturer's annual profit plan and operating budget.
When standard costs are used in manufacturing, the standard cost of a product for a future accounting period will be as follows:
Direct materials: a set quantity of each material and a set price per unit of material.Direct labor: a standard quantity of labor and a standard cost per hour of laborManufacturing overhead: a fixed overhead budget, a standard variable overhead rate, and a standard quantity for applying fixed and variable overhead rates.Learn more about the Standard cost here:
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Britton is starting a new internet business by himself. Which of the following business organization formats will he most likely use to start the business? A) Sole proprietorship B) Limited partnership C) Limited liability partnership D) Corporation E) Limited liability company
Britton is starting a new internet business by himself. A) Sole proprietorship business organization formats will he most likely use to start the business
What is Sole proprietorship?
A sole proprietorship is a type of business that is owned and operated by one person and in which there is no legal separation between the owner and the business entity. It is also referred to as a lone tradership, individual entrepreneurship, or proprietorship. A sole proprietor may hire staff members and does not always work alone.
A person who runs an unincorporated business alone is known as a sole proprietor. However, if you want to classify a domestic limited liability company (LLC) as a corporation and you are the only member, you are not a sole owner.
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nintendo's ebit is $350, its tax rate is 21%, depreciation is $50, capital expenditures are $70, and the planned decrease in nwc is $40. what is the firm's fcff?
Nintendo's EBIT is $350, its tax rate is 21%, depreciation is $50, capital expenditures are $70, and the planned decrease in NWC is $40. The firm's Free cash flow is $365.
Free cash flow = EBIT(1-Tax Rate) + Depreciation & Amortization - Change
in Net Working Capital - Capital Expenditure
Free Cash Flow = $350(1 - 0.21) + $50 - $70 - $40
Free Cash Flow = $365
Free cash flow (FCF) is the money a business makes after subtracting the cash it must spend to run its business and maintain its capital assets. Or to put it another way, free cash flow is the money that remains after a business pays its operating expenses (OpEx) and capital expenditures.A company may do whatever it wants with FCF, which is the money that is left over after paying for expenses like payroll, rent, and taxes. A company's cash management will be aided by knowing how to compute and analyze free cash flow. Investors can improve their investment choices by using the FCF calculation to gain insight into a company's financials.Learn more about Free cash flow (FCF), here
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In order to be classified as a developmental disability, a disorder must have three components.
a. true
b. false
In order to be classified as a developmental disability, a disorder must have three components. This statement is true.
The term "developmental disability" refers to a wide range of chronic diseases that include physical or mental disabilities that appear before adulthood. People who have developmental impairments may struggle in several facets of life, particularly when it comes to speech, movement, learning and independent living. Early identification of developmental disorders is possible, and they can last the entirety of a person's life. Global developmental delay is a term used to describe a developmental disorder that impacts all aspects of a child's development.
The most prevalent developmental impairments are learning disorders like dyslexia, Tourette's syndrome, dyspraxia, dysgraphia, Irlen Syndrome and dyscalculia, as well as motor disorders.
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You contributed $4,000 to your roth ira this year. If you are in the 15% marginal tax bracket, what will be the tax benefit you receive this year from your contribution?.
The tax deduction that I will receive from this contribution is $600.
What is tax deduction?Tax deductions are often the result of expenses, particularly those incurred to generate more revenue, and they represent a decrease of income that is subject to taxation. Tax incentives include exemptions, credits, and deductions, as well as other things. Deductions and exemptions both lower taxable income, whereas credits also lower tax. This is the distinction between the three. Deductions frequently come with restrictions, including the requirement that they only be used for costs incurred to generate immediate advantages. It may be necessary to capitalise assets that will provide future value, however there are several exceptions. For instance, interest on student loan balances is deductible. Some tax systems allow for tax deductions for goods that powerful parties want people to buy.
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bill needs to organize information for his report and he has been told to follow the direct approach. bill should
Bill needs to organize information for his report and he has been told to follow the direct approach. Bill should be List the recommendations at the start of the study, followed by the findings that supported those recommendations.
These days, you can probably pay all of your bill with a click of the mouse online. The best thing is that it is straightforward and can provide time and financial savings. Just take care to avoid the usual risks associated with online bill payment. One method of avoiding missed payments and late fees is to maintain organization.
Easiest way for managing bills are-
Create a master bill calendar and master bill list with due dates as the first step.
The second step is to organize your bills by gathering them in one place.
Establish a regular time to pay your bills in Step 3.
In step 4 Use electronic payment options wherever applicable.
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Create a simple sketch showing what hawkins and crusoe could produce if the two men lived independently on different sides of the island. Then in one or two sentences write a caption to explain why hawkins has an absolute advantage in food production. Use the term absolute advantage.
If two men are producing the same good, but one of them is producing more, with the same constraints, then he has an absolute advantage.
In economics, the principle of absolute benefit is the potential of a party (a man or woman, or company, or a country) to produce an awesome or provider more efficaciously than its competition. The Scottish economist Adam Smith first defined the precept of absolute gain in the context of international alternate in 1776, the use of hard work as the handiest enter. seeing that absolute gain is determined through an easy comparison of hard work and productiveness, it's miles possible for a party to haven't any absolute benefit in something.
The capability of an actor to provide greater and more amazing service than a competitor. Comparative advantage: The ability of an actor to provide a great or provider for a decreased opportunity value than a competitor. Absolute gain refers to the uncontested superiority of a country or business to produce a specific proper better. Comparative advantage introduces opportunity price as a component for analysis in selecting among one-of-a-kind options for production diversification.
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which of the following would be the initial effect of an individual making a $10,000 cash deposit in a bank?
a. The money supply would rise by $10,000.
b. The money supply would fall by $10,000.
c. The money supply would not be affected by the deposit.
d. The money supply would fall, but by less than the $10,000 deposit.
Answer:
C. The money supply would not be affected by the deposit
Explanation: The person depositing has the same amount of money regardless in cash or in his bank, so it wont be affected.
Compared with a perfectly competitive market,a single-price monopoly with the same market demand and cost curves will.
A single-price monopolist produces less and charges a higher price than perfect competition.There is less surplus for consumers.When rent seeking costs are taken into account, the monopoly also makes a larger economic profit.
Are monopolies less productive and more expensive?
Monopoly Production Point As a result, in a competitive market, monopolists produce less but charge more.Production for Monopoly:Monopolies produce at the point where marginal revenue and costs are equal, but they charge the market demand curve's price for that quantity.
Why do monopolies have lower output and higher prices?
This is because the company in the monopoly market sets prices, while the company in the perfectly competitive market takes prices.It demonstrates that the firm makes the price decision and the monopolist charges a higher price.
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john kim agrees to contribute equipment with a fair market value of $5,000 in exchange for 100 shares of rio inc.'s common stock with a par value of $1 per share. rio will record this transaction as a credit to which of the following accounts? (check all that apply.)
Answer:
Common Stock
Paid-in Capital in Excess of Land
Explanation:
Common Stock and Paid-in Capital in Excess of Par Value are credited
John Kim contributed equipment with a fair market value of $5,000 in exchange for 100 shares of Rio Inc.'s common stock with a par value of $1 per share. Rio Inc should record this transaction as a credit in common stock and paid in capital in excess of Par value.
Paid-in capital in excess of par value is the difference between the stock's fair market value and its par value. It is the premium paid for a stock that has appreciated in value. Paid in capital in excess of par is formed when investors pay more than the par value for their shares of stock.
Hence, the transaction of of $5,000 should be recorded as a credit in paid in capital in excess of par value.
Another transaction is : 100 shares of Rio Inc's worth $1 per share. Hence, transaction of $100 should be recorded as a credit in common stock.
Therefore, the transactions should be recorded as follows:
- common stock $100 (credit)
- Paid in Capital in excess of Par value $5,000 (credit)
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waste disposal, inc. wants to build a landfill in northern williamson county. the company must conduct ano study, which includes analyzing the effect the landfill might have on the water supply, air conditions, and wildlife.
The effect the landfill might have on the water supply, air conditions, and wildlife may not engage in this business under any circumstances.
Water supply is the supply of water by a public utility, commercial organization, joint venture, or individual, usually through a system of pumps and pipes. Public water supply systems are essential for the well-functioning of society. These systems provide drinking water to people all over the world.
Water supply systems, infrastructure for the collection, transfer, treatment, storage and distribution of water for domestic, commercial, industrial and irrigation purposes, and public uses such as firefighting and street washing.
Spring water refers to bodies of water (rivers, streams, lakes, reservoirs, springs, groundwater, etc.) that feed public drinking water sources or private wells. Water sources include: Surface water (lakes, rivers, reservoirs, etc.) Groundwater
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A bank loans greg’s ice cream $250,000 to remodel a building near campus to use as a new store. On their respective balance sheets, this loan is.
A liability for Greg's Ice Cream and an asset for the bank. The credit builds the cash supply.
What are a bank's assets and liabilities?
Cash, government securities, and interest-bearing loans (such as mortgages, letters of credit, and inter-bank loans) make up the asset portion of a bank's capital. Loan-loss reserves and any debt a bank owes are included in the liabilities section of its capital.
What are a bank's liabilities?
Deposits and capital, which includes cash reserves and frequently subordinated debt, are the bank's primary liabilities. The latter can come from either domestic or international sources (such as private individuals, banks, and even governments).
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a change in acquisition, maintenance and operating costs affect the demand curve by shifting it left or right depending on whether the costs go up or down.
A change in the acquisition, maintenance, and operating costs affects the Investment demand curve by shifting it left or right depending on whether the costs go up or down.
It's miles far greater not unusual for dividends to be paid quarterly or annually, however, a few stocks and other styles of investments pay dividends monthly to their shareholders. Handiest approximately 50 public groups pay dividends monthly out of a few three,000 that pay dividends on a regular basis.
Bitcoin, the biggest cryptocurrency by way of marketplace cap, is risky funding with high volatility. It ought to simplest be taken into consideration if you have an excessive hazard tolerance, are in a strong financial role, and may afford to lose any cash you invest in it.
For example, certificates of deposit (CDs), money market accounts, municipal bonds, and Treasury Inflation-included Securities (pointers) are some of the most secure styles of investments.
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which of the following statements regarding the statement of cash flows is false? the statement of cash flow separates cash inflow and outflows into three major categories: operating, investing and financing the ending cash balance shown on the statement of cash flows must agree with the amount shown on the balance sheet at the end of the same period the total increase or decrease in cash shown on the statement of cash flows must agree with the bottom line (net income or net loss) reported on the income statement the statement of cash flows covers a period of time
The total cash change shown on the cash flow statement must match the bottom line (net income or net loss) shown on the income statement. The cash flow statement spans a time period, which is false.
What exactly is cash flow?Cash flow refers to the net quantity of cash and cash equivalents carried into and out of a business. Inflows and outflows are represented by money received and spent, accordingly. A company's ability to generate positive cash flows, or, more precisely, to optimize long-term free cash flow, is critical to its ability to create value for shareholders (CFC).
FCF is the cash generated by a company's normal business activities after subtracting capital expenditures (CapEx). The quantity of money that comes in and goes out of a business is referred to as its cash flow. Businesses generate revenue through sales and incur expenses. They may also earn money from interest, investments, royalties, and licensing agreements, in addition to selling products.
They may also receive income from interest, investments, royalties, and licensing agreements, as well as offer things on credit with the expectation of receiving the money owing at a later period.
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true or false? a deductible is the required level of payment that an insured individual/family must meet prior to the insurer making payments in a fee-for-service plan.
A deductible is the required level of payment that an insured individual/family must meet prior to the insurer making payments in a fee-for-service plan. This statement is true.
What is fee-for-service plan?
Fee-for-service (FFS) is a remuneration model in which doctors, hospitals, and medical institutions charge separately for each service provided. In this model, the patient or insurance company is responsible for paying what the provider charges for services.
What is deductible?
A deductible is an amount that a policyholder must pay before the insurance company can begin paying out. In other words, the insurance company is obligated to pay the claim amount only if the deductible is exceeded.
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suppose the price elasticity of supply for crude oil is 0.6. how much would price have to rise to increase production by 12 percent
% change in quantity supplied / % change in price is the price elasticity of supply. The supply price elasticity is 7.2% in that case.
What is price elasticity?The price elasticity of demand is defined as the ratio of the percentage change in quantity demanded to the percentage change in price. Since the demand curve has a downward slope, the price elasticity of demand is frequently negative.The price elasticity of demand is calculated as the amount demanded of a good or service divided by the percentage change in price.Demand elasticity, also known as price elasticity of demand, is calculated by dividing the percentage change in quantity demanded, q, by the percentage change in price, p. The demand elasticity () formula is: = p q dq dp.According to elastic demand or supply, the quantity demanded or supplied responds to price changes in a way that is greater than proportional.To learn more about price elasticity refer to:
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According to the ........... model ,a leader can adopt one of four leadership styles based on a combination of relationship (concern for people) and task (concern for production) behaviors. The appropriate style depends on the readiness level of the followers. A follower’s readiness is based on his or her ............ and .............. to do the work.
The................... leadership style is a highly directive style that involves giving explicit instructions about how to accomplish certain tasks.
With followers who have low readiness because they are new to their jobs and to the organization, the................... leadership style is most effective.
According to the Situational model ,a leader can adopt one of four leadership styles based on a combination of relationship (concern for people) and task (concern for production) behaviors. The appropriate style depends on the readiness level of the followers. A follower’s readiness is based on his or her Ability and Willingness to do the work.
The directing leadership style is a highly directive style that involves giving explicit instructions about how to accomplish certain tasks.
With followers who have low readiness because they are new to their jobs and to the organization, the directing leadership style is most effective.
Which method is adopted in democratic style of leadership?A democratic management style is based on mutual respect. It is often combined with participatory leadership because it requires cooperation between the leader and those led by the leader. A democratic/participatory management style gives managers and their employees greater responsibility.
Transformational leadership is defined as an approach to leadership that brings about change in individuals and social systems. Ideally, you bring valuable positive change to your followers with the ultimate goal of turning them into leaders.
1. Autocratic or authoritarian leadership. Autocratic leaders centralize power and decision-making within themselves.
2. Democratic or participatory leadership. Participatory or democratic leaders decentralize authority.
3. Laissez-faire or vested leadership.
4. Paternalist leadership.
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helene's portfolio produced an actual rate of return of 8.5%. her portfolio has a standard deviation of 5.75% and a beta of 0.95. assuming the market's actual return is 9.65% and the risk-free rate of return is 2.5%, calculate the treynor ratio for her portfolio. a) 0.2000 b) 0.0632 c) 1.0435 d) 0.0289
The Treynor ratio is equal to (Rp - Rf)/Beta. Here, Rp is the portfolio's return, which is 8.5 percent, or 0.085. Rf is the risk-free rate, which is 2.5 percent, or 0.025.
(Option A) Treynor Ratio = (0.085-0.025)/0.95 = 0.0632
A performance metric for determining how much excess return was generated for each unit of risk taken on by a portfolio is the Treynor ratio, also known as the reward-to-volatility ratio.In this sense, "excess return" means more than what could have been earned from a risk-free investment.
When the reading is 0.5, volatility is half as high as the index.A stock with a beta that is negative indicates that it is moving in the opposite direction of the index.When a stock's beta is negative, the Treynor ratio is not as useful.
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although average salaries for teachers in georgia are $3,000 less than the salaries for teachers in hawaii, based on the cost of living index, teachers in georgia rank 4th in the nation compared to hawaii (which ranks 50th). what might cause this to happen?
As technology changes, job opportunities change.
What is technology?
It is sometimes said that technology is the changing and manipulating of the human environment. Technology is the application of scientific knowledge to the practical goals of human life.What is technology, for instance?
Technology is the means through which we put scientific knowledge to use in real-world situations. In addition to machines (such as computers), it also involves techniques and processes (like the way we produce computer chips). Even though it would seem like the majority of modern technology is purely electronic, that isn't the case.Learn more about technology
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sonarbien produces 24,000 units of cell phone. the production requires prime costs of $1,600,000, uses 5,000 machine hours, and takes 3,600 setup hours. the activity rates are $100 per machine hour and $260 per setup hour. what is the unit cost of a cell phone? (note: round your answer to two decimal places.)
The unit cost of a cell phone is $126.50.
What is cell phone?
A portable telephone that can make and receive calls more than a radio frequency link whereas the user is travelling inside a telephone service area is known as a mobile phone, cellular phone, handphone, cell phone, cellphone, pocket phone, handphone, or just phone. The radio frequency link creates a connection with a mobile phone operator's switching systems, granting access to the public switched telephone network (PSTN). In North America, mobile phones are referred to as cell phones or cellular telephones since modern mobile phone services use a cellular network design.
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suppose that the world price of steel is $500 per ton. now suppose that the united states imposes a 20% tariff on imported steel (as it did in 2002). what is the u.s. domestic price of steel after the 20% tariff is imposed (rounded to the nearest dollar) if exporters bear two-thirds of the tariff?
Exporters bear two-thirds of the tariff, or two-thirds of 100, which is equal to 67 (rounded to nearest whole number), so the steel price is 500 times 67, or 567.
What do you mean by tax?A tariff is a tax that a government places on goods and services that are imported from other countries. This tax raises the price of the goods and services and makes them less desirable or, at the very least, less competitive with goods and services made in the country.
Which of the four types of tariffs are it?Specific tariffs, ad valorem tariffs, compound tariffs, tariff-rate quotas, and retaliatory tariffs are just a few examples of these. A specific tariff is a tax that is applied solely to a single imported item and is unrelated to the item's value. Most of the time, the weight or number of imported goods is the basis for a specific tariff.
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a new industry that helped to turn the gulf coast into the home of the world's largest petrochemical industry was .
Petrochemical industry mainly comprise of synthetic fibre / yarn, polymers, Synthetic Rubber (elastomers), Synthetic detergent intermediates, performance plastics and plastic processing industry
What does petrochemical industry do?The synthetic fiber/yarn, polymers, synthetic rubber (elastomers), synthetic detergent intermediates, performance plastics, and plastic processing industries make up the majority of the petrochemical sector. Nylon, acrylics, polyurethane, and polypropylene are some examples of synthetic fibres.Petrochemical products include such items as plastics, soaps and detergents, solvents, drugs, fertilizers, pesticides, explosives, synthetic fibers and rubbers, paints, epoxy resins, and flooring and insulating materials.After a protracted process of refinement in oil refineries, crude oil is the fundamental component used to generate all petrochemical and petroleum components.To learn more about petrochemical industry refer
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the difference between the simple monetary model and the general monetary model of exchange rate determination in the long run is that:
The short-term effects of changing to a more expansionary monetary policy often include increased output and employment, but if the fast monetary expansion continues in the long-term, inflation will result.
A monetary rule is a tried-and-true directive to expand the money supply and boost economic activity, primarily by setting low interest rates to ensure appropriate appropriation by businesses, people, and banks. A quantitative view of an expansionary monetary policy involves central banks protecting assets from banks. As a result, bond revenues decline, and bank borrowing becomes more affordable. This boosts the capacity of banks to provide to individuals and industries.An expansionary monetary policy also runs the risk of accelerating price rises.As is well known, as the nominal exchange rate declines, the real exchange rate also declines, which causes the import to reduce and the export to increase.However, in the long run, if the nominal exchange rate changes, the real exchange rate would stay the same.This has the effect of preventing changes in the nominal exchange rate from also causing changes in the real exchange rate.
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emery is an agent for downtown market corporation. emery makes an innocent misrepresentation when entering into a contract on behalf of downtown market with cool fruits, inc. cool fruits
Emery is an agent for the downtown market corporation. emery makes an innocent misrepresentation when entering into a contract on behalf of the downtown market with cool fruits, inc. cool fruits may rescind the contract.
A marketplace is an area in which consumers and sellers can meet to facilitate the change or transaction of products and services. Markets can be bodily like a retail outlet, or digital like an e-store. other examples include unlawful markets, public sale markets, and economic markets.
The marketplace definition provides a framework for competition evaluation. for instance, market stocks may be calculated most effectively after the marketplace has been defined and, whilst thinking about the potential for brand-spanking new access, it's miles vital to discover the marketplace that is probably entered.
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an employee wears jeans to work and is reprimanded by their supervisor for dressing inappropriately. from then on, the employee wears a dress shirt and tie to work. this is an example of:
An employee wears jeans to work and is reprimanded by their supervisor for dressing inappropriately. From then on, the employee wears a dress shirt and ties to work. This is an example of positive punishment.
What is positive punishment?Positive punishment is a form of discipline that involves adding something unpleasant after a behavior is displayed to decrease the likelihood of that behavior being repeated. Positive punishment can be effective in reducing undesirable behavior, but it can also backfire if it is used excessively or unpredictably. If a child is constantly being punished for various infractions, they may become resentful and rebellious. It is important to use positive punishment sparingly and only when necessary.
In this scenario, the supervisor reprimanded the employee for wearing jeans in the workplace. This acted as a form of punishment to bring positive changes in the employee and the employee also, later on, changed his dress style.
It can be concluded that an employee wears jeans to work and is reprimanded by their supervisor for dressing inappropriately. From then on, the employee wears a dress shirt and ties to work. This is an example of positive punishment.
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what are three characteristics of missionary salespeople? (check all that apply.) multiple select question. they help intermediaries train their salespeople. they develop goodwill and stimulate demand. they have no direct customer contact. they work for producers. they typically work at a customer checkout counter.
They develop goodwill and stimulate demand missionary salespeople.
What is a missionary salesperson?When a missionary salesperson contacts potential customers, even if they are calling on individuals, the interaction is business to business. For instance, a pharmaceutical salesperson might contact a doctor to give the doctor clinical details on the efficacy of a medicine. The medicine salesman hopes the doctor will write a prescription for it. The drug is actually bought by patients, not by doctors. Similar to this, sales representatives call your lecturers and urge them to use particular textbooks. However, the decision to actually purchase the books rests with you, the student.A missionary salesperson is also referred to as a Detailer. In this type of selling, the salesperson's responsibility is to inform a person who has the ability to influence others to purchase a product rather than to make a direct sale to that person.
Hence, They develop goodwill and stimulate demand missionary salespeople.
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which of the following is the primary behavioral principle responsible for the effectiveness of a response cost system?
a) Punishment is the primary behavioral principle responsible for the effectiveness of a response cost system.
In the field of business, punishment is an attribute that helps in making a cost system effective.
When the prices of products are inflated to such a level that people cannot afford it, then as a punishment people stop buying the products. This causes the company or government to face a loss in the economy.
Hence, punishment acts as a major behavioral principle that causes a system to be effective. Without it, economies might collapse.
Although a part of your question is missing, you might be referring to this question:
Which of the following is the primary behavioral principle responsible for the effectiveness of a response cost system?
a) punishment
b) positivity
c) noise
d) revenue
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Which types of files are saved with the mp3 and .zip extensions?
v files are saved with the mp3 extension and
files are saved with .zip extension.
The solution is audio documents and compressed documents.
What is audio document?
The mp3 record is generally related to MPEG audio documents and is a coding layout for virtual audio documents. MP3 record sorts frequently designates documents that comprise MPEG-1 audio and video encoded data .A zip record is a compressed record normally in ZIP layout this is broadly used to archive a pc supported record layout. Files related to .zip extensions are compressed right into a unmarried record for clean transportation. mp3 documents are audio documents, and .zip documents are compressed in order that they take much less space. By so called (unzipping).zip documents, some thing documents had been compressed can be accessible.
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when production problems arise and decisions need to be made, terry believes in getting his staff involved. he presents the issues and seeks a consensus in how to best handle the problem from his staff. what type of decision-making style does terry use?
Terry involves his staff in seeking consensus and handling the problem that arises in the production, he uses a facilitative decision-making style.
The facilitative decision-making style is a process in which all members are involved in tackling problems and making decisions that are satisfied by all. In this, each member including the leader has an equal share and voice in the decision-making process for the organization. This led to better solutions and an increment in team spirit. Using consensus, new ideas can be shared by other members and may end up in making better decision-making than what an organization can have without consensus.
Terry believes in getting his staff involved in the decision-making process in solving problems of production using a facilitative decision-making style.
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Intangible assets are the rights and privileges that result from ownership of long-lived assets that.
Intangible assets are the rights and privileges that result from ownership of long-lived assets that do not have physical substance.
Intangible assets are those that don't have any physical parts. Software, patents, copyright, franchises, goodwill, and trademarks are a few examples. Unlike material and monetary assets, It can be very difficult to appraise an intangible asset.
As well as being a significant source of competitive advantage for companies, intangible assets are an essential part of creating value for shareholders and stakeholders. For instance, patents help companies stop others from using their inventions without permission.
Physical objects that can deteriorate and sustain harm over time are considered tangible assets. On the other hand, intangible assets can be thought of as boosting a company's present or future worth and are often more valuable to a corporation than its tangible assets.
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During a recession, unemployment compensation payments increase without the need for any government action. This increase is an example of.
This increase is an example of the automatic fiscal policy.
What is a fiscal policy?Fiscal policy, in economics and political science, refers to the use of taxation and spending to affect a nation's economy. In response to the 1930s Great Depression, which rendered the previous laissez-faire approach to economic management unworkable, the use of government revenue expenditures to affect macroeconomic variables emerged. John Maynard Keynes, a British economist, developed the Keynesian school of economics, which postulates that changes in government spending and taxation levels have an impact on aggregate demand and the level of economic activity. This is the foundation upon which fiscal policy is based. The main tools the government and central bank of a nation use to further their economic goals are fiscal and monetary policy.
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