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Case:- Bennett Body Company
This case focuses on the difference between a business that produces a standard good (and uses standard costing) and on that produces custom goods and uses job costing. Although numbers are included in this case, they are their to help illustrate the effect of changing the system.Your options for this case are:
Keep the existing system used by Bennett Body Company
Change to a standard costing system used by Conley
Use a hybrid form of costing that utilizes both standard and job costing features
There are many correct answers to this case; however, all involve giving specific examples to justify which accounting method you prefer. In addition, if there are clear reasons why one of the systems should not be used, explain what they are.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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