Answer:
low-cost
Explanation:
I may not be right, so use this as a last resort if necessary.
Explicit and Implicit costs should be considered when measuring economic profit because a business must cover its opportunity costs as well as its out-of-pocket expenses to be truly profitable. Economic profit consists of revenue minus implicit (opportunity) and explicit (monetary) costs. Explicit costs are monetary costs a firm has. Implicit costs are the opportunity costs of a firm’s resources.
Answer:
$612
Explanation:
To compute the depreciation, first we have to compute the depreciation per hour which is given below:
= (Cost of diesel-powered tractor - estimated residual value) ÷ (useful operating life)
= ($186,240 - $5,700) ÷ (59,000 hours)
= ($180,540) ÷ (59,000 hours)
= $3.06 per hour
Now the depreciation would be
= Operated hours × depreciation per hour
= 200 units × $3.06
= $612
Answer:
The time value of money is used to determine the fair value of the transaction ( B )
Explanation:
If a contract involves a significant financing component the time value of money is used to determine the fair value of the transaction and this is because the time value of money states that the money at hand ( available money ) is worth more than the identical sum of money in the future due to the earning capacity of the money.
therefore a contract involving a significant financing component ( present monetary component ) would have its fair value determined by the time value of money
