The reason I would make this choice is to stimulate lending to businesses, reduce unemployment and increase household income so that the economy could then recover naturally. Scenario 2 In 150 to 200 words, explain your reasoning for the way you are planning on using the Discount Rate. Be sure to address the following: 1. How the Discount Rate can affect the economy 2. How your action will affect economic growth 3.
Being able to track sales compared to the previous years’ numbers is a valuable tool in being able to track business. They use this information to forecast on where they think the business will be heading in the next week, month, or year. If the debt percent gets to high then they need to adjust the amount of liabilities that they have to bring that number down. Knowing the times interest earned ratio allows the managers to know at what percent the company is earning interest on its net income. Investors find this information lucrative because the more expendable cash a company has the more likely they are to pay out in dividends for the stock holders..
The amount is determined with guidance from 450-20-30-1, which states to accrue the low end of a range, unless one estimate is more likely than another. That entry would be: Lawsuit Loss $17,000,000 Lawsuit Liability $17,000,000 Alternate to question 1: I believe that if management chooses to, they could make an argument to book the low end of the estimate. This fact is made apparent by the same section of the codification, 450-20-30-1 which allows the principle of conservatism. If
Decreasing the interest rate effectively increases consumer and businesses consumption. Lower interest rates also increase investments and net exports (Hubbard, 868). These increases push true GDP back in line with potential GDP and, as a result, production increases. This increase in production also increases the need for workers, ultimately increasing employment. Conclusion The Federal Reserve is a very powerful entity and has a large amount of influence on how our nation’s economy performs.
Question B Discuss the advantages and disadvantages of Job Order Costing. Be sure to include specific examples of the advantages/disadvantages that you discuss. Week 3 Discussion Questions Question A What is the difference between operations costing and a process costing system? How does a company decide whether to use a job order or a process cost system? Question B How does the treatment of costs differ in ABC systems as opposed to traditional cost systems?
M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (n.d.). Pg. 808. In Purchasing and supply chain management (5th ed., pp. 1-825).
* Lowering banks’ interest rates. This will increase the consumer consumption as they will borrow at lower rates and therefore it will encourage them and business owners to investment more and increase the economy growth. * The government should increase their spending. This will increase the flow of money in public and private sectors which lead to empower businesses and bring people back to work after the
Since the points mentioned above, HF proposes a new investment policy to reallocate their asset position (reduce the domestic public equities from 30% to 21%, increase absolute-return strategies from 10% to 20% and TIPS from 7% to 13%, implement the program called “equitization” and “bondiztion” on absolute-return strategies). Through the new policy, HF hopes to seize the investment opportunities to gain more return on capital market. b) Yes, we think it is adequate to meet HF’s goal. Under Monte Carlo simulation, new asset allocation can produce 9.6% expected return which can obviously surpass the long-term spending goal of 5.25% of giving grants plus 0.35% of management cost plus 2.5% of expected inflation rate, that is, 8.1% totally. Moreover, in contrast with the conservative strategy, by using Monte Carlo simulation, in the event of
(Kelly, M. and McGowan, J., 2012)(p.19 & 21). Fiscal policy is more effective in promoting economic growth, by increasing government spending or reducing taxes. Fiscal policy in economic has reflected both political and economic realities. Monetary policy has the ability to slow down the economy in order to promote full employment and inflation. The monetary policy to economic is to increase the amount of money, by cutting interest rates.