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2 years ago

Marginal social cost is defined as:_____.

Business

1 answer:

Alika [10]2 years ago

8 0

Marginal social cost is defined as the marginal private cost plus the opportunity cost.

When an extra or additional unit of a good or service this produced brings about a change in society's total cost. This change in society's total cost is called marginal social cost. This includes both the opportunity cost and the marginal private cost. So it is the total of the private cost and the external cost that the person has to pay.

Marginal private cost is the change in the total cost of the producer due to the production of an additional unit of a good or service. This cost is also known as the marginal cost of production For example if the production of a person's costs rises from$1,000 to $1,050 due to the production of this one good being produced for $50 is known as the marginal private cost.

The opportunity cost is the benefit the person would have gotten if he would have invested the money elsewhere. For example, if the person has an extra $50. He can either invest it in the business or he can invest it in the bank and get the interest. The interest money that the person has to forgo is called the opportunity cost.

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Based on the net income of the shop, the sales staff at Francesca's Fashions receive performance bonuses. In periods of declinin

lana [24]

Answer:

B: LIFO

Explanation:

Based on the information provided it can be said that in this situation the costing method that would bring the most benefit would be LIFO costing method. This acronym refers to last-in-first-out and describes a method of assuming that the last items that enter an inventory are always the first ones to be sold during that accounting year. This method would provide the most benefit because it usually results in higher cost of goods sold and a lower overall inventory.

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4 years ago

Patterson Brothers recently reported an EBITDA of $5.5 million and net income of $1.5 million. It had $2.0 million of interest e

Vilka [71]

Answer:

Depreciation & amortization = $1 million

Explanation:

The EBITDA is the earning of the company before interest, tax and depreciation and amortization deduction.

To calculate the Net Income from EBITDA, we subtract the charges for depreciation, amortization, interest and taxes.

Thus, net income is,

Net income = EBITDA - Depreciation & amortization - Interest - Tax

The tax is deducted from EBT which is earnings before tax. It is calculated by deducting the depreciation & amortization and interest from EBITDA. Thus, after deducting tax from EBT, we get net income. We can say that if tax is 40% it means that tax is 40% of EBT and net income is the remaining 60% of EBT.

Thus, if 60% of EBT is 1.5 million, then total EBT is,

EBT = 1.5 / 0.6 = $2.5 million

So, tax is = 2.5 * 0.4 = $1 million

Plugging in the values available in the net income formula,

1.5 = 5.5 - Depreciation & amortization - 2 - 1

1.5 + Depreciation & amortization = 5.5 - 3

Depreciation & amortization = 2.5 - 1.5

Depreciation & amortization = $1 million

5 0

4 years ago

On January 1, 2018, Ameen Company purchased major pieces of manufacturing equipment for a total of $36 million. Ameen uses strai

vfiekz [6]

Answer:

1.31-Dec-21

Dr Income tax expense $12.50

Cr To Income taxes payable $11.00

Cr To Deferred tax liability $1.50

2.$37.50 million

Explanation:

1. Preparation of the appropriate journal entry to record Ameenâs 2021 income taxes. Assume an income tax rate of 25%.

Depreciation as per books for 2021 = $30 - $28 Depreciation as per books for 2021= $2 million

Depreciation as per tax for 2021 = $20 - $12

Depreciation as per tax for 2021 = $8 million

Taxable income = $50 + $2 - $8

Taxable income = $44 million

JOURNAL ENTRIES - Ameen Company (In million)

31-Dec-21

Dr Income tax expense $12.50

Cr To Income taxes payable ($44*25%) $11.00

Cr To Deferred tax liability ($6*25%) $1.50

(To record income tax expense)

2. Calculation to determine What is Ameenâs 2021 net income?

Ameen's 2021 net income = $50 - $12.50

Ameen's 2021 net income = $37.50 million

Therefore Ameen's 2021 net income is $37.50 million

6 0

3 years ago

Robert will be working overseas on a permanent assignment for an international company beginning on March 1 of this year (306 da

swat32

Answer:

Minimum amount of Robert's salary that he must include in gross income this year = $113892

Explanation:

Minimum amount of Robert's salary that he must include in gross income this year = [9200 x 12 x 306/365] + [11000 x 12 x 59/365] = $113892

7 0

4 years ago

what act requires lenders to complie and submit their home loan origination data to their resperctive supervisry agencies

hodyreva [135]

Answer:

correct answer is (HMDA) Home Mortgage Disclosure Act

Explanation:

solution

(HMDA) act, Home Mortgage Disclosure Act

HMDA was enacted in the 1975 and it is implemented by a Federal Reserve Board Regulation

and Home Mortgage Disclosure Act providing public with loan data as how financial institution is serve housing need of community

and Home Mortgage Disclosure Act regulation required mortgage lender for report specific information about commercial loan for residential or apartment building etc

so here correct answer is (HMDA) Home Mortgage Disclosure Act

8 0

3 years ago