Answer:
3.45% (Approx)
Explanation:
Given:
NAV at ending = $14
NAV at starting = $14.50
Capital gain = $1
Computation of net rate of return :
Rate of Return = [(NAV at ending - NAV at starting + Capital gain) / ( NAV at starting)] × 100
= [($14 - $14.50 + $1) / ($14.5)] × 100
= [$0.50 / $14.5] × 100
= [0.0344827586] × 100
= 3.44827586%
= 3.45% (Approx)
Answer: Direct labor hours
Explanation: In simple words, direct labor hours refers to the standard amount of time that the labor takes to complete a task. It is a very common and has been used traditionally as an allocation base for the overhead costs.
Using this as a base, the accountant can allocate the overheads by allocating the per unit cost on the basis of direct labor hours worked in a particular span of time.
Hence, from the above we can conclude that the correct option is B.
Answer:
a. Economic profit is the excess of revenue over both opportunity (implicit) and explicit costs. Explicit costs are the cost of all inputs used.
b. The difference between economic profit and accounting profit is that in calculating economic profit, both the explicit costs and the implicit or opportunity costs are deducted from the revenue. Whereas, in computing the accounting profit, only the explicit costs are deducted from the revenue.
c. Economists measure economic profit rather than accounting profit because economists believe that the real cost of an output includes the economic or opportunity cost (potential benefits lost as a result of the course of action chosen).
Explanation:
Opportunity cost is the implicit cost incurred, which is equal to the potential benefits lost by an individual or a business, when an alternative is chosen instead of the other alternative. It is an important concept in the computation of economic profit. The concept ensures that both implicit and explicit costs are considered when determining the profits generated by a business.
Answer:
0.875
Explanation:
The income elasticity of demand measures the responsiveness of quantity demanded to changes in income.
Income elasticity of demand = percentage change in quantity demanded / percentage change in income
14% / 16% = 0.875
Demand is inelastic because the coefficient of elasticity is less than one.
I hope my answer helps you
