Suppose that the central bank wants to slow down the economy by decreasing the money supply. The bankers estimate that the velocity of money is 2, and that the price level will decrease from 100 to 90 (deflation). Using the quantity equation of money, what will be the impact of an $80 million dollar decrease in the money supply on the quantity of goods and services in the economy, given an initial money supply of $800 million

Activity-based costing (abc) is not truly a cost collection mechanism as much as it is an inventory valuation method. the main purpose for implementing an activity-based cost system is to try to overcome some of the cost distortions that occur in traditional costing from product differences when there are variations in size and complexity. however, one of the disadvantages of utilizing abc is that the additional information gathering necessary to implement costing with that level of detail might be beyond the reach of some companies with resource or financial constraints. with this in mind, what kinds of industries or companies do you think would benefit most from using activity-based costing and why? in designing or modifying an accounting system to capture appropriate costs for abc, what considerations do you think would need to be made?