What Happens to M1 and M2+ Due to Each of the Following

question 23

Essay

What happens to M1 and M2+ due to each of the following changes?
a.You take $500 out of your chequing account and put it into a passbook savings account.
b.You take $1000 out of your chequing account and put it into a current account.
c.You take $1500 out of your money-market mutual fund and deposit into your chequing account.
d.You cash in $2000 in savings bonds and invest the money in a certificate of deposit.

Explain the significance of standard cost recording in inventory management.

Analyze the effect of labor rates on cost variances and operational efficiency.

Recognize the importance of standard costing in identifying and managing production variances.

Understand the relationship between labor efficiency variance and variable overhead efficiency variance.

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Definitions:

Break-Even Point

The financial point at which costs equal income, with no net loss or gain.

ROI

Return on Investment; a financial metric used to evaluate the efficiency or profitability of an investment or compare the efficiency of several investments.

Promotion Expenditures

Funds allocated by a business to carry out promotional activities aimed at boosting sales and enhancing brand visibility.

Promotion-to-Expenses Ratio

A metric analyzing the relationship between the amount spent on promotional activities and the overall expenditure of a business.