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1 year ago

Opportunity costs are not found in accounting records because they are not relevant to decisions.

1 answer:

6 0

The following statement "Opportunity costs are not found in accounting records because they are not relevant to decisions" is false.

The opportunity cost is the time spent learning and the money that might have been used for something else. When a farmer decides to grow wheat, there is an opportunity cost associated with not doing so or using the resources in another way (land and farm equipment).

The apparent advantage of not selecting the next best alternative when resources are limited is what is commonly referred to as opportunity cost. Opportunity costs are not just monetary or financial expenses. An opportunity cost is also the real price of missed productivity, time, or any other for-profit gain.

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A manufacturer has a monthly fixed cost of $50,000 and a production cost of $7 for each unit produced. The product sells for $16

Oxana [17]

Answer:

The manufacturer will have a c. Loss

Explanation:

The break-even point is the level of production at which the costs of production equal the revenues for a product and calculated by using following formula:

Break-even point in units = Fixed cost/(Selling price per unit-Variable cost per unit) = $50,000/($16-$7) = $50,000/$9 = 5.556 units (rounding)

The manufacturer produces and sells 3,000 units per month < Break-even point in units. Therefore, the manufacturer will have a loss

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3 years ago

Read 2 more answers

What is the result of selling prices and revenues increasing faster than costs?

Lena [83]

T's impossible to determine whether lowering costs or increasing revenue is more important across the board for all companies. There are too many factors that can influence the answer for a given company, in a given market or in a given economy. A specific marketing focus may be the key to financial stability and steadily increasing profits.<span>

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3 years ago

Sarah is shopping at Sylvia’s thrift store, and notices that the inside of the store needs repainting. Sarah offers to paint the

Ksivusya [100]

The answer is Yes because Sylvia will have to pay Sarah for painting the store even though she did not verbally agree to the contract.

<h3>What is a Contract?</h3>

A Contract is a formal arrangement between two or more party where one promise to perform a duty in return for a consideration (value).

In conclusion, the answer is Yes because Sylvia will have to pay Sarah for painting the store even though she did not verbally agree to the contract.

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2 years ago

Assume that during 2020, Cypress Semiconductor Corporation reported net cash provided by operating activities of $155,985,000, n

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Answer:

$19,525,000

Explanation:

Calculation to determine the free cash flow

Using this formula

Free cash flow=Net cash provided by operating activities-cash spent for plant assets-Dividends

Let plug in the formula

Free cash flow=$155,985,000-$132,295,000-$4,165,000

Free cash flow=$19,525,000

Therefore The Free cash flow is $19,525,000

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3 years ago

The board of commissioners of the City of Hartmoore adopted a General Fund budget for the year ending June 30, 2017, that includ

ASHA 777 [7]

Answer:

See explanation section

Explanation:

Req. A

As the general fund budget is formally integrated, the journal entry at the beginning requires to make the revenue debit and appropriations to be credit. And there must be a balancing figure to integrate the operational transfers.

Debit Revenues $1,432,500

Debit Bond proceeds 427,500

Credit Appropriations $980,000

Credit Operating transfers out 480,000

Credit Fund balance (Balance debit - credit) 400,000

Fund balance is the budgetary amount.

Req. B

At the end of the accounting period, the fund balance needs to be removed by making it debit. Most importantly, as the year wears out, all the budgetary plans will be transferred. Therefore, the journal entry is-

Debit Appropriations $980,000

Debit Operating transfers out 480,000

Credit Fund balance (Req. A) $400,000

Credit Revenues $1,432,500

Credit Bond proceeds 427,500

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3 years ago