Figure 8.1 -Refer to Figure 8.1 If the Saving Rate Is S1

question 152

Multiple Choice

Figure 8.1
-Refer to Figure 8.1 If the saving rate is s1, and the economy currently has K3 level of capital. Which of the following is true?

• A) Depreciation is less than saving and the level of capital will increase.
• B) Depreciation is greater than saving and the level of capital will decrease.
• C) Depreciation is greater than saving and the level of capital will increase.
• D) Depreciation is less than saving and the level of capital will decrease.

Calculate net income using both variable costing and absorption costing methods.

Identify and compute product cost per unit under both costing methods.

Analyze the impact of inventory levels on net income under both costing methods.

Understand and calculate the contribution margin and its significance.

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Definitions:

Brainwriting Sessions

A brainstorming technique where ideas are written down by participants before being shared with the group, aiming to generate a wide range of ideas without immediate critique.

Idea Quota

is a predetermined goal for generating a specific number of ideas within a set period, often used in brainstorming sessions or creativity exercises to stimulate thinking.

Core Group

The central or most influential members within a larger group or organization, often driving decisions and setting directions.

Solitary Time

Periods spent alone, which can be used for reflection, self-discovery, or individual activities without the influence or interruption of others.