Economics Answers

What are the different sources of data for cash flow statement and cash flow projection?

Part way through the production process it is discovered that the cost assignment was inaccurate for product A and that there has been an underestimation of $150 per unit. They are unable to change the pricing because of contractual obligations.

What is the impact of this error in cost assignment if sales were as predicted?

calculate increase/decrease of predicted sales using data given for product A 12000 units.

Predicted: 12,000 of product A and 8,000 of product B.
Actual: 15,000 for product A and 7,000 for product B.
The wholesale margin on product A is calculated to be $450 and on product B it is $350.
The predicted sales mix is 12,000/20,000 = 60% of A to 40% of B.
The actual sales mix is 15,000/22,000 = 68.2% of A to 31.8% of B.
The sales mix variance for A is 15,000*(0.682% - 0.6%)*$450 = 553,500 or favorable variance.
For B, the sales mix variance is 7,000*(0.318 - 0.4)*350 = -200,900 or unfavorable variance

FEEDBACK-The answer is incorrect. The BAS allows a business to report different taxes, some will be a credit (ATO owes money) like the GST credit in the Activity, which represents the difference between GST Collected and GST Paid.

Other taxes form liabilities (money owed to the ATO) like the PAYG Withholding in the Activity.



The difference between all the tax credits and liabilities reported in the BAS, including the FBT, is what will be either paid to the ATO or received from the ATO.

QUESTION-The activity statement allows a business to calculate obligations, allowing a single payment or refund for each reporting/ payment period, across the taxes.

For example, if in a quarterly reporting/ payment period, a business had:

· a GST credit of $15,000

· a PAYG instalment liability of $6,000

· a PAYG withholding liability of $1,500, and

· an FBT liability of $1,000

Would the business need to make any payments?

What factors lead to high pump gas prices these days from Demand perspectives? Apply ALL of TIPEN Demand Determinants and include the source pages in your textbook.

“it is orthodox to say people’s desire has no boundary from the time past, even in the face realistic limited resources, individual agents never stop to want more of economic output”.In not less than 180, and not more than 250 words, validate the above statement and discuss with relevant details.

Explain the following carefully: “A change in the price level shifts the aggregate expenditures curve, but not the aggregate demand curve.” Include graphs as part of the analysis

What is the impact on income when the actual sales figures are used?

calculate the loss of income using product A 12000 units


A furniture manufacturer predicts that they will sell 12,000 of product A and 8,000 of product B in the next financial period. They prepare their budget accordingly.

Suppose the income elasticity of demand for pre recorded music compact disks is +6.0 and the income elasticity of demand for a cabinet maker's work is +6.0. compare impact on pre recorded music compact disks and the cabinet maker work of a recession that reduces consumers income by 10%

Meaning of Alphanumeric classification


Meaning of Chronological classification

Explain the difference between a cash flow statement and a cash flow projection.