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1. Contrast the 3 major classes of tax bases, also addressing economic bases.
2. Examine various methods of government financing in their budget, and give a synthesis of the strengths and weaknesses of these methods, as well as their long term effects.
3. The classical economists argued that budget deficits would not affect current spending. Suppose the federal government increases its purchases of goods and services by $100 billion this year. Classical economists who believe in the idea of Ricardian equivalence would argue that the increase in federal spending would have no effect on aggregate spending in the economy and no effect on private investment. Why would a $100 billion increase in spending financed by a deficit have no effect on the economy other than a reallocation of resources from private to government use?
Reed company employs a standard costing system. Manufacturing overhead is applied to products based on machine hours (MH). Employ the following information to make the needed calculations:
Discuss the factors that a company must consider when deciding whether to use a job order or a process cost system. What might be the consequences to a company if they make the wrong choice?
Create a memo on the ‘state of the company's industry' and associated risk factors.
After reviewing its cost structure (variable costs of £7.50 per unit and monthly fixed costs of £60,000) and its potential market, the Forecast Company established what it considered to be a reasonable selling price.
Prepare Company financial statements
Phonetronix is the small manufacturer of telephone and communications devices. Recently, company management decided to investigate the profitability of cellular phone production. They've three different proposals to evaluate.
Feather Friends, Inc., distributes the high-quality wooden birdhouse which sells for $20 for each unit. Variable costs are $8 per unit, and fixed costs total $180,000 per year.
Jackson Construction Company uses a job order costing system. In May 2008, Jackson made a $1,650,000 bid to build a pedestrian overpass over the beach highway in Gulfport, Mississippi.
Factors which must be taken in account when making decisions regarding price, such as any change in risk involved in cost-volume-profit structure; the link between short- and long-run prices
Which of the following characteristics applies to process costing but not to job costing?
The Houston Armadillos, the minor-league baseball team, play their weekly games in small stadium just outside Houston. The stadium holds 10,000 people and tickets sell for $10 each.
What is the break-even point in boxes of candy for the company under the existing situation? What selling price per box must the company charge to cover the 15% increase in the cost of the raw materials i.e., candy, and still maintain the current c..
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