A negative externality or spillover cost occurs when the total cost of producing a good exceeds the costs borne by the producer.
- Spillover costs, commonly referred to as "negative externalities," are losses or harm that a market transaction results in for a third party. Even though they were not involved in making the initial decision, the third party ultimately pays for the transaction in some way, according to Fundamental Finance.
- An incident in one country can have a knock-on effect on the economy of another, frequently one that is more dependent on it, known as the spillover effect.
- Externalities are the names for these advantages and costs of spillover. When a cost spills over, it has a negative externality. When a benefit multiplies, a positive externality happens. Therefore, externalities happen when a transaction's costs or benefits are shared by parties other than the producer or the consumer.
Thus this is the answer.
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If there are 250 equivalent units of production for materials, the cost per equivalent unit for materials is (D) $34.60.
<h3>
What is weighted-average costing?</h3>
- To apply the weighted average methodology, divide the cost of the commodities on the market by the number of units still on the shelf.
- This calculation results in the weighted average cost per unit, which can subsequently be used to allocate a cost to both ending inventory and the cost of goods sold.
- When you wish to give some numbers in a dataset more weight than others, you should use a weighted average.
- This is beneficial in situations where a single event might have several positive or bad outcomes, but the scale of the positive or negative outcomes varies.
Weighted average cost per unit formula = divide the total purchase price by the number of units available for sale
∴ $3,650 + $5,000 / 250 = $34.60
Therefore, if there are 250 equivalent units of production for materials, the cost per equivalent unit for materials is (D) $34.60.
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Complete question:
Canners Company uses weighted-average costing. Beginning work in process inventory had $3,650 of material costs. During the period, $5,000 of materials and $9,250 in conversion costs were added. If there are 250 equivalent units of production for materials, the cost per equivalent unit for materials is ______. Multiple choice question.
(A) $71.60
(B) $20.00
(C) $57.00
(D) $34.60
Answer:
C. Egoism
Explanation:
Egoism refers to the individual belief whereby self interest is the motivation and goal behind one's action. It has to do with and individual thinking about only himself and what actions he can take to benefit himself alone. Egoism threats self interest as the foundation of morality. But in reality however, egoism is immoral as one possessing such thoughts is not been fair to others. Thus, egoism does not focus on the wellbeing of others. It is all about self interests.
Answer:
The new machine should not be purchased.
Explanation:
initial outlay = -$3,700 + $1,000 = -$2,700
cash flow years 1-4 = $700
discount rae = 8%
Using a financial calculator, the NPV = -$381.51
Since the NPV is negative, the new machine should not be purchased.
Answer:
c. Subtract total satisfaction from consuming N - 1 (first) products from total satisfaction from consuming N products
Explanation:
By definition, marginal utility of consuming one more unit of product or service is the additional satisfaction of consuming that unit of product or service.
That additional satisfaction from (consuming) the Nth products = total satisfaction from (consuming) all N products - satisfaction from consuming (first) N - 1 products
(first) should be added, because you are finding the satisfaction from the last consumed product.
