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4 years ago

The opportunity cost of producing capital is

Business

1 answer:

Fittoniya [83]4 years ago

8 0

Answer:

A) decreased current production of consumption goods.

Explanation:

Opportunity cost is the economic cost that is not part of books of accounts. It is the cost of sacrificing one alternative for choosing another one. It is always calculated in terms of money, sometimes time, skill, etc are also referred to as opportunity costs. If one wants to produce capital then he has to give up the current production of consumption goods.

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or 2018, Gourmet Kitchen Products reported $22 million of sales and $18 million of operating costs (including depreciation). The

Vinil7 [7]

Answer:

Economic value added = $1,250,000

Explanation:

Economic value added (EVA) = Net operating profit after taxes - Invested capital * cost of capital

Economic value added= [($22,000,000 - $18,000,000) * (1 - 0.35)] - [$15,000,000 * 9%]

Economic value added = ($4,000,000 * 0.65) - $1,350,000

Economic value added = $2,600,000 - $1,350,000

Economic value added = $1,250,000

5 0

3 years ago

The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year. Shareholders requi

Galina-37 [17]

Answer:

Return n investment = 11.67%

Explanation:

Return on Investment is the proportion investment that is earned as operating income.

For the division, the return on investment would be the proportion of te investment in assets that is earned as net income.

This would be determined as follows;

Return n investment = (Net income÷ Operating assets) × 100

Return n investment = (175,000 ÷ 1,500,000) × 100= 11.67%

Return n investment = 11.67%

3 0

3 years ago

The section of his business plan in which Jones sets forth the purpose of his cabinet-making business-its reason for existing-is

lorasvet [3.4K]

Answer:

The correct answer is letter "C": "Mission Statement".

Explanation:

A company's mission statement represents the objective that the firm must set. That objective must last and should be adaptable to the changes it could be exposed to. It clearly states the purpose of the company and why it exists and operates. The mission statement also identifies by whom the entity is formed and their respective functions.

4 0

4 years ago

The following transactions occur for Cardinal Music Academy during the month of October: Provide music lessons to students for $

Masteriza [31]

Answer:

a. Journal entry to record music lesson

Date Account title and Explanation Debit Credit

October Cash $12,500

Service revenue $12,500

(To record music lesson for cash)

b. Journal entry to record prepaid insurance purchase

Date Account title and Explanation Debit Credit

October Prepaid insurance $3,660

Cash $3,660

(To record prepaid insurance paid for next year)

c. Journal entry to record musical equipment purchased

Date Account title and Explanation Debit Credit

October Equipment $15,500

Cash $15,500

(To record musical equipment purchase for cash)

d. Journal entry to record

Date Account title and Explanation Debit Credit

October Cash $21,000

Notes payable $21,000

(To record loan taken by signing a note)

6 0

3 years ago

The Daily Grind sells coffee makers. Its inventory of coffee makers without timers cost $20,000 and is now valued at $10,000. It

zysi [14]

Daily grinds inventory value = coffee maker with timer value x n units + coffee maker without timer in x n units

where:
coffee maker with timer value = $35000
coffee maker without timer = $10000
n= 5 units each

Daily grinds coffee maker inventory value = ($35000 x 5)+( $10000 x 5)
= $225000

5 0

4 years ago