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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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The management of an SBU is addressing the issue of whether through investment and a new

White raven [17]

Using a market development investment-driven strategy, the SBU (Strategic Business Unit) that can be transformed into a star is a question mark SBU.

The characteristics of a question mark SBU are:

high growth prospects
low market share
consumes a lot of cash
generates little returns
loses money

For the transformation of a question mark SBU, more investments and new strategies have to be brought in.

Thus, a question mark SBU has the highest potential to turn into a star if the market growth is high.

Read more about the BCG growth share matrix at brainly.com

7 0

2 years ago

Difference between bookkeeping and accounting in table

Sladkaya [172]

Answer:

Bookkeeping is related to the recording measuring, and finding the financial data of a company and Accounting is the process where in the company's financial data is summarized, and a report is prepared for the same.

Explanation:

hope this will help you

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2 years ago

An investment project has annual cash inflows of $2,800, $3,700, $5,100, and $4,300, for the next four years, respectively. The

lubasha [3.4K]

Answer:

Discounted payback period = 1.89 years

Explanation:

If Initial cost is $5,200

Year Cash flow Present value Present value Discounted

at 11% Cumulative cash flow

0 -5,200 1 -5,200 -5,200

1 2,800 0.9009 2,523 -2,677

2 3,700 0.811 3,003 326

3 5,100 0.73126 3,729 4,055

4 4,300 0.6587 2,833 6,887

Discounted payback period = 1 + (2,667/3003)

=1.89 years

Working

PV= (1+i)^-n

i= 11%, n= respective years 0,1,2,3,4

6 0

3 years ago

Barbara buys the same market basket each week and spends $60 on it. This week Barbara brought $60 to the store but could not buy

Arisa [49]

Answer:

there was inflation

Explanation:

Inflation may be defined as the rise in the price or the increase in the cost of a product or commodities in the market. It is when you pay more price for the same commodity that you have bought it in a less price earlier.

When there is inflation, the price of goods in the market increases.

In the context, Barbara usually buys the same market basket every week at a price of $ 60. But this week she could not buy the market basket even though she had $ 60 with her. This is because the price of the market basket increased this week due to inflation and now cost more than $60. So Barbara could not buy the market basket.

4 0

3 years ago

Exercise 12-7 Shown below are comparative balance sheets for Flint Corporation. Flint Corporation Comparative Balance Sheets Dec

lubasha [3.4K]

Answer:

Greg ....... and also bob lol

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3 years ago