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3 years ago

What is the primary difference between accounting profits and economic profits?

Business

1 answer:

sergejj [24]3 years ago

6 0

Answer: Accounting profits ignore implicit costs; economic profits consider them.

Explanation: In simple words, implicit cost refers to the cost of choosing the best alternative and loosing the profit that one could have earned by choosing the second best alternative.

Accounting profit is the revenue that one has left with after compensating for explicit cost but economic cost also takes into consideration the implicit one.

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______________ organizations scatter it components in different locations to address local business needs.

Elan Coil [88]

Decentralized organizations

6 0

3 years ago

Kingbird Company has five employees participating in its defined benefit pension plan. Expected years of future service for thes

viktelen [127]

Answer:

Total number of years remaining for employees = 3 + 4 + 5 + 6 + 6 = 24 years.

Projected benefit of $88,560.

Year Annual Amortization

2020 88,560 * 5/24 $‭18,450‬

2021 88,560 * 5/24 $‭18,450‬

2022 88,560 * 5/24 $‭18,450‬

2023 88,560 * 4/24 $‭14,760‬

2024 88,560 * 3/24 $‭11,070‬

2025 88,560 * 2/24 $‭7,380‬

Total $88,560

Every year the projected benefit is amortized by the number of employees still working divided by the total number of years for all the employees.

8 0

3 years ago

Martin Enterprises needs someone to supply it with 120,000 cartons of machine screws per year to support its manufacturing needs

ANEK [815]

Answer:

The Bid Price you should submit is $15.45

Explanation:

NPV = -795000 + 143000*(1-21%)/1.09^5-70000 + 70000/1.09^5 + ((120000*(P-10.15) - 435000 - 795000/5)*(1-21%) + 795000/5)/0.09*(1-1/1.09^5)

=> -795000 + 143000*(1-21%)/1.09^5 - 70000 + 70000/1.09^5 +((120000*(P-10.15) - 435000 - 795000/5)*(1-21%) + 795000/5)/0.09*(1-1/1.09^5) >=0

=>P = 15.446118865171

Therefore, The Bid Price you should submit is $15.45

6 0

2 years ago

The electric utility rate for a facility during the months of May through October is 4.5 cents per kilowatt-hour for energy, $11

Minchanka [31]

Answer: $11564

Explanation:

Total units consumed for August = 96000

There's a peak demand of 624kw

Also, the May through October is 4.5 cents per kilowatt-hour for energy.

The August electric bill will then be:

= 96000 × 4.5/100 + 624 × 11.50 + 68

= (96000 × 0.045) + (624 × 11.50) + 68

= 4320 + 7176 + 68

= 11564

4 0

2 years ago

Which one of the following forms is used in connection with registration of securities of a small reporting company with $25 mil

ki77a [65]

Answer: S-1

Explanation:

According to the the securities and exchange commissions, the S-1 is the registration under the SEC act of 1933. Whereby a company file form S-1 in anticipation of IPO (initial public offering).The company must be small reporting company with $25 million of annual revenues and of $25 million of voting securities held by non-affiliates.

4 0

3 years ago