The profit value will be greater in absorption costing compared to marginal costing because absorption costing produces: Lower value of closing stock Greater value of closing stock Lower number of units of closing stock Greater number of units in closing stock

Q: the concept of globalization

A: Globalization connects the economies of the whole world by removing trade barriers and enabling them…

Q: Service- industry example

A: Service industry: A service industry is an economic sector that delivers particular intangible…

Q: Define control decisions.

A: Managerial accounting: Managerial accounting is a system, or a process of collecting and organizing,…

Q: the significance of protecting the environment.

A: Introduction: A healthy lifestyle necessitates a clean atmosphere. The more we disregard the…

Q: Explain “gain contingency”.

A: MEANING OF GAIN CONTINGENCY:- A gain contingency is an uncertain situation that will be resolved in…

Q: What are the causes of information risk

A: Information risk is related to the risk of three elements in any business, these are…

Q: Discuss the diffences between internal and external users of ingormation and their needs and demands…

A: Accounting Information System (AIS):   The system which helps to gather, store and process the…

Q: AIS conceptual design

A: AIS stands for Accounting Information System. The process of keeping the accounts and financial…

Q: Identify activities that consume resources.

A: Activity-based costing also known as ABC is a costing method that assigns indirect cost to…

Q: What are the objectives of application controls?

A: An application control consists of compactness and validity checks, identification, authentication,…

Q: Define relevant risk

A: For investors, risks are classified into the following two types: Systematic risk/relevant…

Q: practical issues of wacc

A: Every entity uses a mix of equity and debt to fund its operations. This mix is recognized as the…

Q: Define agency conflict

A: Agency conflict denotes to the conflicts that arise between the agent and Principal. In the finance…

Q: Explain FLSA and its purpose.

A: FLSA stands for fair Labor Standards Act. It is an act that aims at protecting the interest of…

Q: Explain an example of internal events.

A: An Accounting event is a transaction that is recorded in the books of accounts of the company. There…

Q: Describe Caveats?

A: A notice that is given to the court that it must give caveator a fair hearing before making any…

Q: What is sensitive analysis?

A: Sensitive analysis is a method for predicting the outcome of a decision if a situation turns…

Q: Define value-based management

A: SOLUTION:- VBM is a concept whih refers that management should firstly consider the interest…

Q: Identify special issues related to LIFO.

A: LIFO (Last in First out): In this method, the units bought last are sold first. In other words, in…

Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.