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ozzi
3 years ago
7

Suppose that a friend asks you to drive him to the airport this weekend so that he can catch a flight. He pays you for the gas u

sed driving to the airport and for the cost of parking the car at the airport while you help him in with his bags. He then declares that you are now even, since he has fully compensated you for any costs you incurred in helping him get to his flight. From your perspective, what aspects of the price of taking your friend to the airport has he omitted?
Business
1 answer:
galina1969 [7]3 years ago
4 0

Answer:

Implicit Imputed opportunity cost of time sacrifised while airport drop .

Explanation:

My friend asking me to drop at airport, & paying costs : gas used while driving, parking cost of car - has excluded certain price giving aspects.

He has included all the Explicitly quantified costs , whose payment is made to third person - like fuel & parking.

However, he has not included the implicit cost in terms of opportunity cost i.e other things sacrifised while going to drop him. Such costs payment is although not directly made to third person, but they still reflect a 'cost' as they reflect a gain sacrifised meanwhile.

In this case, it includes time sacrifised while going to drop friend at airport. That time could be used at work, which could have monetary benefits. So, this cost is eliminated to be evaluated by my friend.

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The banking system in the united states is a dual banking system with both state and ___________ banks.
Viktor [21]
The answer is probably national
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3 years ago
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Heidi quit her job as a chef making $40,000 per year to start her own restaurant. The first year, Heidi's restaurant earned $100
Murrr4er [49]

Answer:

The accounting profit is $30,000.

Explanation:

The implicit cost of running the restaurant is the opportunity cost of giving up a salary of $40,000 per year working as a chef.  

The revenue earned from the restaurant is $100,000.  

The explicit costs is  

= $50,000 + $20,000

= $70,000  

An accountant will consider only the accounting cost or explicit cost in the calculation of profits.  

Accounting profit

= Total revenue - Explicit costs

=  $100,000 - $70,000  

= $30,000  

3 0
3 years ago
Material participation standards for shareholders of Subchapter S corporations, who are individuals, include those who during th
Liono4ka [1.6K]

Answer:

The correct answer is letter "D": participated in business activities for more than 100 hours during the tax year and the participation was not less than the activity of any other individual's during the tax year.

Explanation:

Material Participation Tests are principles the Internal Revenue Service (IRS) considers at the moment of qualifying an individual as being part of an income-producing activity. There are seven (7) tests taken into consideration by the IRS but only one requirement is necessary for qualification. Among them, test three (3) states that <em>an individual qualifies if that person was involved for more than 100 hours and not less than any other individual in the firm</em>.

8 0
3 years ago
Philadelphia Company has the following information for March: Sales $486,599 Variable cost of goods sold 205,621 Fixed manufactu
egoroff_w [7]

Answer:

Manufacturing margin is $203,253

Contribution margin is $230,357

Net income $118,547

Explanation:

Manufacturing margin is the sales revenue minus manufacturing costs

Sales revenue                           $486,599

Cost of goods sold                  ($205,621)

fixed manufacturing cost         ($77,725)

manufacturing margin            $203,253

Contribution margin is sales revenue minus variable costs:

Sales revenue                           $486,599

Cost of goods sold                  ($205,621)

variable selling & admin          ($50,621)

contribution      margin            $230,357

Income is the sales revenue minus all costs incurred:

Sales revenue                           $486,599

Cost of goods sold                  ($205,621)

fixed manufacturing cost         ($77,725)

Variable selling & admin          ($50,621)

Fixed selling & admin              ($34,085)

Net income                             $118,547

6 0
3 years ago
How does immigration not lead to poverty?
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Answer:

Poverty rates and median family income

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Explanation:

have a great day

7 0
2 years ago
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